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Cybersecurity startup Arctic Wolf raises $401 million in convertible notes offering

Arctic Wolf, a leader in security operations, announced closing of a convertible notes offering in the aggregate principal amount of $401 million, led by existing investor Owl Rock, a division of Blue Owl Capital, with participation from new and existing investors including Viking Global Investors, the Ontario Teachers’ Pension Plan, and funds advised by Neuberger Berman

This announcement marks another milestone in Arctic Wolf’s journey, amidst a strong demand for end-to-end security operations solutions which has seen the Arctic Wolf Security Operations Cloud scale to become a leading data platform in cybersecurity, processing more than 2.5 trillion security events per week.

Building on strong demand for the Arctic Wolf Security Operations Cloud and the cybersecurity outcomes it helps enable across the entire security operations framework, Arctic Wolf’s business has continued to grow. Currently, Arctic Wolf serves over 3,000 customers that range from large enterprises to small and mid-sized businesses (SMBs), while working with a growing roster of over 1,100 channel partners worldwide that support our fast-paced, frictionless go-to-market model.

In the last twelve months, Arctic Wolf has also doubled its headcount driven by expansion into new global markets including most recently, South Africa, Benelux, and the Nordics, as well as an upcoming launch into APAC. This international expansion follows on the heels of Arctic Wolf opening its EMEA headquarters in Newcastle, England and the establishment of its first European security operations center (SOC) in Frankfurt, Germany.

As a leading technology company helping to define the security operations market, Arctic Wolf continues to develop new capabilities that advance its offering of a comprehensive range of technology and services designed to further the company’s mission to end cyber risk. Specifically, Arctic Wolf has recently introduced new incident response offerings via its Tetra Defense business unit, further enhanced its Security Operations Warranty offering, which offers eligible customers up to $1 million in financial assistance in the event of certain cyber attacks, and launched a new Data Exploration module which allows internal IT and security teams to quickly find answers to critical security questions with data that spans their security and IT toolset.

We’re delighted to expand our partnership with Arctic Wolf,” said Ilan Aharoni, vice president at Owl Rock, a division of Blue Owl Capital. “Many businesses lack the expertise and resources to secure themselves against today’s growing challenges. 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.”

Arctic Wolf addresses several of the key themes we see across the cybersecurity landscape: the challenge of monitoring and securing increasingly complex IT environments, the difficulty in keeping pace with sophisticated threat actors, the need to unify disparate and sprawling toolsets, and the major talent shortage in security,” said David Jar, managing director at Owl Rock, a division of Blue Owl Capital. “We’re thrilled to deepen our relationship with the management team as they continue their relentless focus on customers and executing against the market opportunity.”

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,” said Nick Schneider, Arctic Wolf’s president and chief executive officer. “By bringing our holistic platform to our customers, we are bridging the security operations gap faced by businesses of all sizes. We are excited to leverage this latest financing round to continue our hypergrowth journey.”

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