Arctic Wolf

Arctic Wolf offers managed security services, including managed detection and response (MDR) services, managed cloud monitoring, and risk monitoring tools. The company provides an artificial intelligence-based platform, combined with a team of cybersecurity analysts who support enterprise cybersecurity teams with 24/7 threat monitoring and response.

Arctic Wolf acquired the cybersecurity training and awareness startup Habitu8 for an undisclosed amount in September 2021. The addition of Habitu8 further advanced its managed security awareness training platform, with live-action videos and animated content to strengthen the overall security posture of customers across endpoints, networks, and in the cloud. The company also acquired the threat detection and response startup, Tetra Defense in February 2022 in a bid to strengthen its Security Operations portfolio with the latter’s incident response, proactive security readiness, and threat intelligence capabilities.

In June 2021, Arctic Wolf announced an expansion into Europe, the Middle East, and Africa (EMEA), with plans to build its European headquarters in the UK and its first EU security operations center (SOC) in Germany by late-2021. The company also actively looked at growing its footprint in the Nordic and Benelux regions.

Funding and financials

In October 2022, Arctic Wolf raised USD 401 million in funding by means of a convertible note. The round was led by Owl Rock with participation from investors such as Viking Global Investors, the Ontario Teachers’ Pension Plan, and Neuberger Berman. The company expected to use the funds for product development, to pursue strategic M&As, and global expansion–with a particular focus on the Asia-Pacific region, Australia, and New Zealand. According to the terms of the convertible note, the debt is to convert to equity shares in the event the company was to go for an initial public offering (IPO), at a premium to the price.

As of October 2020, the company recorded 106% YoY growth in subscription income and 180% growth in its enterprise customer base. Arctic Wolf recorded a 100% year-over-year (YoY) growth in annual recurring revenue (ARR) in each of the past seven years preceding 2020. The company processed 1.2 trillion cybersecurity events per week, had 650 global partners and over 40,000 trained sellers across the financial services, healthcare, government, and manufacturing sectors, as of July 2021. As of October 2022, Arctic Wolf served over 3,000 customers globally and doubled its headcount which was fueled by global expansion.