Funding Alert

Arctic Wolf raises $401 million led by Owl Rock

• ByStartupStory     |    October 7, 2022

Cybersecurity company Arctic Wolf has raised $401 million in convertible notes led by existing investor Owl Rock (OWL.N), and Viking Global Investors. The latest example of late-stage startups seeking alternative financing to bridge the longer-than-expected gap between funding rounds and an initial public offering (IPO). Arctic Wolf, which raised equity financing at a valuation of $4.3 billion in July 2021, has been working with banks on IPO preparations since the beginning of this year.

Viking Global Investors, the Ontario Teachers’ Pension Plan and Neuberger Berman also participated in the fundraising;it will help the company to bolster its balance sheet and fund potential acquisitions, its chief executive, Nick Schneider reported  in an interview.

Arctic Wolf provides security software tools and services to help companies detect and recover from cybersecurity threats. Set out to provide enterprise-level security to organisations that typically don’t have the security resources, it now serves over 3,000 customers across industries from healthcare to manufacturing.

Schneider said-“The markets just aren’t in a great spot for IPOs, and that’s why in part we wanted to make sure that we looked at our other options.” he added that – “The company has doubled its headcount and revenue in the past year, driven by expansion into new regions including South Africa and Australia.” 

 

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