IronNet Cybersecurity

IronNet Cybersecurity is the developer of the Collective Defense AI-powered Network Detection and Response (NDR) platform that enables cybersecurity analysts and information technology teams to automatically detect and respond to anomalous threats in real-time with point and click commands through a visual dashboard. It allows a group of organizations to share threat-related data they encounter with one another to identify known threats and help prepare their cyber defenses.

In August 2021, the company merged with LGL Systems Acquisition Corp (LGL) in a special purpose acquisition company (SPAC) deal and commenced trading on the NYSE under the ticker “IRNT”. The company received approximately USD 136.7 million in net proceeds through the transaction for global expansion initiatives.

In June 2022, IronNet laid off 55 employees (~17%) to boost efficiency, reduce expenses, and preserve cash as part of its broader streamlining plan.

In July 2023, IronNet announced it had entered into a take-private deal with C5 Capital, contingent upon restructuring its top management and restructuring its finances. The firm also announced C5 chair Linda Zecher would take over the position of CEO from IronNet founder Keith Alexander. Alexander would continue in a non-executive capacity as company chairman. IronNet subsequently announced formal intent to delist from the NYSE.

Key customers and partnerships

The company serves 8 of the top 10 energy companies, 2 of the top 3 largest hedge funds, the space industry, and clients in the financial services, healthcare, telecommunications, commercial, and energy sectors across the US, UK, Europe, Middle East, and Africa as of March 2021.

Funding and financials

In January 2023, the company secured a 2 million loan facility as part of its take-private deal with C5 Capital Limited (C5). The loan bears an interest rate of 13.8% per annum and the total amount outstanding is payable on June 30, 2023.

C5 Capital had reportedly provided IronNet with USD 13.2 million in funding as of July 2023, and reportedly agreed to provide an additional USD 15.1 million up to USD 51 million more, once the cyber firm completed its delisting from the NYSE, subject to numerous other requirements.

In FY2022, the company recorded a revenue of USD 27.5 million, representing a 6% decline YoY driven in part by a reduction in professional services revenue. The customer count was at 88 as of Q4 FY2022, compared to 27 during the same period in FY2021. Revenue guidance for FY2023 stands at USD 34 million, which implies an YoY growth of 25%. IronNet Cybersecurity reported 2,098 indicators of compromise (IoCs) and ingested nearly 2 trillion data flows in 2020. IronNet Cybersecurity announced revenue guidance for FY2022, and expects revenue in the range of USD 43 million to USD 45 million (implied growth of 47.3–54.1%), with an ARR of USD 75 million.

IronNet expects revenue to increase by 25% to USD 34 million in FY2023.