Arctic Wolf, an Eden Prairie-based cyber defense company, announced Thursday that it secured $401 million in convertible notes from existing and new investors, marking the second time in as many days a Twin Cities cyber threat company has closed on significant growth funding.
Eden Prairie's Arctic Wolf cyber defense firm secures $401M in new funding
The money will go to hiring more people and product development, the company said.
October 6, 2022 at 6:33PM
On Wednesday, Minneapolis-based NetSPI announced it had secured $410 million in funding from investors.
The convertible notes — loans that that can be converted into equity of the company — are coming from Arctic Wolf's existing investors, Greenwich, Conn.-based Viking Global Investors and Owl Rock, a division of publicly traded lending firm Blue Owl Capital. In addition, new investors are part of the round: the Ontario Teachers' Pension Plan and funds managed by New York-based investment management firm Neuberger Berman.
The funds will be applied toward hiring more workers and product development, according to a release from the company.
"This latest investment is a testament to our opportunity to unify the market at hand through our security operations platform, while solving the ever-present cyber talent crisis," Nick Schneider, Arctic Wolf's president and chief executive, in a statement.
Viking Global and Owl Rock participated in a $150 million round of funding by Arctic Wolf in July 2021, which valued the company at $4.3 billion. At that time, the company employed just fewer than 1,000 workers. Now, Arctic Wolf has more than 2,000 employees distributed across the U.S., Europe, South Africa and the Asia-Pacific region.
"Arctic Wolf's continued growth and expansion amidst a tumultuous market is a testament to the strong value proposition of its one-stop cloud native platform coupled with its differentiated delivery model," Ilan Aharoni, Owl Rock's vice president, in a statement.
In the past two years, Arctic Wolf has raised $410 million from investors. In October 2020, the company secured $200 million and announced it was moving its headquarters from Sunnyvale, Calif., to Eden Prairie.
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