Today?is an important milestone in the history of Arctic Wolf as we have secured a $200M Series E round of funding at a valuation of $1.3?billion.
This?new investment into?our business?not only?validates?our?strategy?and leadership?position?in the security operations market,?it?is a testament to the?hard work?and?loyalty we have received from our?employees, partners, and customers.
When we started the company in 2012,?we set out not just to make cybersecurity better but to?fundamentally change?it.?We recognized that cybercriminals?were innovating faster than the industry, so a?profoundly?new approach was needed. The answer to better cybersecurity?was?not buying and deploying?an endless procession of new?security?tools and?“silver bullets“?but?developing a complete program that can adapt to the ever-changing security landscape.?
To put in plainly —?we realized that, for most organizations, cybersecurity?wasn’t?a tools problem; it?was an operations problem.
In our early days, the idea of delivering?security?technology?as a service?was?a?new?concept.?This is?because?there?wasn’t?a platform that could ingest data from anywhere, and certainly not a cloud-native one.?Another?issue?was?the challenge of?expertise.?The cybersecurity skills shortage?is nothing new, and?it?has?always?left?organizations?struggling?to hire?security talent. And?suppose?a company?chose to?outsource?its?security??In that case,?they’d?get?a call center experience?instead of working with someone who knew them and the environment they were trying to protect.?
These?two issues?drove?us to create the two?cornerstones?of Arctic?Wolf; the Arctic Wolf ºÚÁÏÉç and the?Arctic Wolf?Concierge Security Team.?
The Arctic Wolf ºÚÁÏÉç is?a?vendor-agnostic?platform that can?collect?signals?from?any security tool?to drive?faster threat detection?and?eliminate alert fatigue. At the same time,?the Concierge Security Team is a dedicated group of individuals?provided to each customer that?offers?proactive security guidance.
When?combined, these two?Arctic Wolf?cornerstones?offer?companies?what?acronyms like?EDR, MSSP, and SIEMs?have?all failed to do?—?provide?them?security operations that?are?effective,?affordable, and obtainable.
When we?first?came to market in 2014,?the term?“managed detection and response“?(MDR)?didn’t?exist?yet.?Yet, today?it is the most crucial security operations capability?a company can have.?Gartner predicts 50% of all organizations?will use?MDR?by 2025, and this new round of funding cements our leadership?position?in this space?as the?first and?only MDR vendor with a valuation over a?billion dollars.
And even?this year,?as the?pandemic has created?economic and operational?headwinds for many industries and organizations,?demand for?MDR and our other?our?security operations?solutions?has?resulted in some?incredible?corporate milestones and year-over-year performance metrics?for us,?including:
- 106% growth in subscription revenue
- 180% growth in the number of customers in the enterprise segment?
- 301% growth in the number of customers using multiple solutions?
- 282% growth in the number of channel partners, driven by the?company’s?transition to a 100% channel sales model
- 270% growth in the number of security events (now approaching 1 trillion per week) processed by the Arctic Wolf ºÚÁÏÉç
As part of this funding round, the?investment community?we spoke to?recognized?the market demand driving our success.?Lance Matthews, Principal at DTCP,?cited the struggles organizations?have?with their security operations?as one?reason?they chose to invest in us.
“We have seen businesses struggle with maintaining their cybersecurity posture as remote work has increased the number of potential attack vectors. Arctic?Wolf’s?platform stands out in the market as a full-stack solution that combines automation, integrations, and a personalized approach helping?customers’?security operations.“
So,?what’s?next for Arctic Wolf?with this new round of funding??New security operations solutions, new markets, and,?most importantly,?continuing on our journey of helping organizations?end cyber risk.
The fact of the matter is, despite Arctic Wolf helping to protect thousands of organizations, the cybersecurity industry continues to have an effectiveness problem. Just like in 2012, when we first identified the issues plaguing the industry, IT and security leaders continue to invest in new tools, and we continue to see a steady stream of data breaches in the headlines.
To end cyber?risk?once?and for all,?organizations need to embrace an operational approach to security, and doing so only?requires three simple things:
- Centralizing?all of their data and telemetry into a cloud-native platform
- Enabling?24×7 monitoring, threat detection,?and response
- Having?on-demand access to security expertise?
For some organizations?with?ample?discipline, maturity, and financial resources,?implementing these three?pillars?is an achievable?in-house?goal, but those companies are few and far between.
The SANS Institute estimates that?only about 50% of organizations have a security operations center,?and?until that changes, attackers are going to have a target-rich environment,?and?we’re?going to continue seeing more security failures in the headlines.
We?believe?that?Arctic?Wolf?is?perfectly poised?to help?all?organizations, no matter size or location, on?their security?journey, and with?our new round of funding,?we?believe we?will be able to do what we set out to do eight years ago ¨C fundamentally change the?cybersecurity?industry.
Are you ready to fundamentally change your security operations?
- Learn more about Arctic Wolf¡¯s security operations solutions
- Get insights from our recent Security Operations Report
- If you¡¯re ready to get started today, request a demo or get a quote
