CNBC Disruptor 50

17. Arctic Wolf

Founders: Brian NeSmith, Kim Tremblay
CEO: Nick Schneider
Launched: 2012 
Headquarters: Eden Prairie, Minnesota
Funding:
$498 million
Valuation: $4.3 billion
Key technologies:
Artificial intelligence, cloud computing, machine learning, software-defined security
Industry:
Cybersecurity
Previous appearances on Disruptor 50 List: 0

Persephone Kavallines

The recent headlines of massive cyberattacks and ransomware demands shows the problem of security breaches are only increasing while risks from the rise of remote and hybrid working, more cloud services, and ubiquitous use of mobile phones are only growing.

Arctic Wolf, an Eden Prairie, Minnesota-based cybersecurity company founded in 2012, is aiming to separate itself from the pack of vendors that are working on reducing the number of breaches.

Amid this swarm of attacks, Arctic Wolf is competing to land enterprise contracts. Arctic Wolf seeks to keep companies aware of potential hazards and to deal with security risk problems as an operational issue, not one that can be fixed solely by tools. It provides security operations as a concierge service.

Its cloud-based platform, built to ingest data from widely used sources across endpoints, networks and clouds to provide automated threat detection and responses and cut down on false alerts, has served banks, hospitals and municipal governments in limiting cyber risks. Interactive training, coaching and mini-lessons are also part of the package. This managed security approach builds a centralized operations platform internally for an organization's overall monitoring of threats.  

With over $130 billion being spent annually on defense against data cybercrimes, the outlook for Arctic Wolf is strong. Going deeper into the enterprise market has helped it land more than 2,700 customers.

Partnering with U.S. tech titans has also contributed to this expansion, as its platform integrates with several third-party security tools. Last year, Arctic Wolf named Amazon Web Services as its primary cloud provider to power its security operations platform. The company also joined the Microsoft Intelligent Security Association, a coalition of partners with a shared mission to provide better security.

The company landed a $150 million Series F venture investment that valued the company at $4.3 billion. The capital infusion was led by Viking Global Investors, Owl Rock and other existing backers, which came less than a year after a prior round at $200 million and a valuation of $1.3 billion, bringing its total funding to just about $500 million.

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