By Krystal Hu
(Reuters) – Cybersecurity startup Arctic Wolf, which recently raised funding at a valuation of over $4 billion, is seeking to hire financial advisors for a stock market listing early next year in the United States, a top executive told Reuters.
Arctic Wolf has started interviewing investment banks and is expected to finalize advisors for its initial public offering (IPO) in the coming months.
The company raised $150 million from investors including Viking Global Investors and Owl Rock in a private funding round in July that valued the startup at $4.3 billion.
During the pandemic, Arctic Wolf benefited from higher investments in security solutions, as remote working arrangements forced companies to spend more on software tools that counter security threats.
The Eden Prairie, Minnesota-based startup is aiming to go public in the second half of 2022, according to Chief Executive Nick Schneider.
“The acceleration in our growth is in part due to the impact of COVID on businesses and that’s both around digital transformation…and people starting to work from anywhere who need protections on their internal network,” said Schneider.
Schneider, who took over as CEO in August, has been spearheading Arctic Wolf’s efforts to expand internationally, as it attempts to put a governance structure in place before it goes public.
Founded in 2012, Arctic Wolf provides security software tools and services to detect and help companies recover from cybersecurity threats. Its services are used by enterprises across several industries, including healthcare, financial services and manufacturing.
Arctic Wolf generates revenue through a subscription model, which has grown by over 100% in the past year, it said.
The company also counts Lightspeed Venture Partners and Redpoint Ventures among its investors.
(Reporting by Krystal Hu in New York; Editing by Bernadette Baum)
