Cybersecurity has been a primary concern for companies of all sizes in recent years, but especially now as people continue to work remotely due to the global pandemic. In fact, cyberthreats related to coronavirus shot up 600% from February to March, with remote workers a prime target for online criminals.
Yet a 2019 report found that 73% of companies aren't prepared for a cyberattack. So it’s not surprising that firms like Arctic Wolf are working to fill in the gap. The Sunnyvale, California-based company provides security operations as a concierge service, with experts acting as an extension of an organization’s internal team.
Arctic Wolf’s primary offering is Arctic Wolf Managed Detection and Response, a solution that enables organizations to detect, respond, and recover from advanced cyber threats. The company has seen strong growth, with its customer base surging over 130% and a doubled security team to over 400 employees across four North American offices.
In March, Arctic Wolf raised $60 million in Series D funding, led by Blue Cloud Ventures and Stereo Capital, with additional participation from several new and existing investors. And now the company has announced that it has raised $200 million in Series E funding at a valuation of $1.3 billion—becoming the first MDR vendor to secure a valuation of over $1 billion.
The funding round was led by Viking Global Investors, with additional participation from DTCP and existing investors. This latest cash infusion will enable Arctic Wolf to accelerate the introduction of new security operations offerings and enter into new markets.
“Every year, businesses continue to make significant new investments in cybersecurity tools, yet we still see breaches in the headlines. The rapid growth of Arctic Wolf is being driven by organizations realizing that they don’t have a tools problem, but an operational one, and that they can’t solve their security operations challenges on their own,” said Brian NeSmith, CEO and Co-Founder, Arctic Wolf.
In addition, the company is relocating its global headquarters from California to Eden Prairie, Minnesota. The new funding will allow Arctic Wolf to make significant investments in its new headquarters by the end of 2021, including adding more than 150 new jobs and the construction of the company’s third security operations center. The company also has its sights set on growth outside the U.S. and plans to use the capital to facilitate expansion into the EMEA (Europe, Middle East, and Africa), APJ (Asia Pacific and Japan), and Latin America markets.