SOCaaS Funding: Arctic Wolf Raises $6OM; Continues MSSP, MSP Partner Push
Arctic Wolf, a security operations center-as-a-service (SOCaaS) provider, has raised $60 million in a Series D financing round led by venture capital firms Blue Cloud Ventures and Stereo Capital. The company will use the funding to launch new service offerings, according to a prepared statement.
The Series D funding comes after Arctic Wolf recently made several moves to grow its operations, including:
- Hiring Dan Larson as SVP of Marketing: Arctic Wolf last month appointed Dan Larson to SVP of marketing to lead its marketing strategy, including its product marketing, demand generation and field and partner marketing initiatives. Larson most recently served as VP of product marketing at endpoint protection platform provider CrowdStrike and director of technical marketing at Intel Security.
- Launching Managed Containment Security Services: Arctic Wolf in December integrated managed containment capabilities into its Managed Risk service. The capabilities include host-based containment, 24/7 monitoring, containment reporting and containment notifications.
- Partnering with Puma Telecommunications: Arctic Wolf in July partnered with Puma Telecommunications, a company that specializes in compliant infrastructure management, to help healthcare organizations detect and respond to cyberattacks.
Arctic Wolf Business Growth
Also, Arctic Wolf recently has recorded several milestones, including:
- Growing its customer base by over 130 percent in 2019.
- Increasing its revenue by 4,300 percent over the past four years.
- Doubling its security team to over 400 employees across four North American offices over the past four years.
Furthermore, Arctic Wolf in May unveiled a 100 percent channel partner strategy for its U.S. and Canadian channel partners. Arctic Wolf enables its partners to integrate its SOCaaS into their portfolios and offer managed detection and response (MDR) as a value-add solution or service.
Arctic Wolf Channel Partner Strategy
That partner strategy has three go-to-market components, Chief Revenue Officer Nick Schneider tells MSSP Alert. The efforts include:
- Resale: Here, Arctic Wolf engage with end users and VARs.
- MSP Plus: This is a hybrid model. Here, customers engage with Arctic Wolf directly but the MSP is involved in the entire service delivery process — including reporting, escalations and more.
- MSP: This is a pure MSP delivery model, in which Arctic Wolf is delivered to the MSP as the customer.
Arctic Wolf: SOCaaS Business Model
Although Arctic Wolf is growing rapidly, MSSP Alert does not know the company’s actual revenue figures or profits (if any). Also, the SOCaaS market is crowded with MSSPs, MDR (managed detection and response) and software providers all trying to reach MSPs and/or end customers.
Still, Arctic Wolf is unique because the company controls its intellectual property and has a simple sales model that gives partners and customers a predictable monthly cost, CRO Schneider asserts. For instance, the monthly cost for Arctic Wolf remains fixed regardless of how much log information and or support the end-customer leverages, Schneider adds.
Additional insights from Joe Panettieri.