Arctic Wolf initially pitched itself for SOC (security operations center) as a service (SOCaaS) opportunities. But more recently, the cybersecurity startup has emphasized various managed security services. Indeed, the company develops security software and related services to address managed detection and response (MDR), risk mitigation, cloud monitoring, and managed security awareness training.
Arctic Wolf pivoted to a 100 percent channel strategy in May 2019. Dell, Microsoft and EqualLogic veteran Bob Skelley joined as senior VP of global channels in November 2020. The company's channel partner program gained defined tiers and more benefits in June 2021. Key partners include global distributor Ingram Micro.
Arctic Wolf Funding Rumor, Previous Venture Capital Rounds
The new funding round is expected to be led by existing investor Viking Global Investors, with participation from such existing investors as Lightspeed Venture Partners, Redpoint Ventures and Unusual Ventures, Bloomberg reports. Neither Arctic Wolf nor Viking Global offered a comment to Bloomberg about the rumored new funding round.
If the funding rumors are true, then Arctic Wolf's valuation has more than tripled in less than a year. Moreover, the new round would be the security startup's third raise in little more than one year. Two earlier rounds, according to MSSP Alert, involved:
- October 2020: Arctic Wolf raised $200 million in Series E funding at a $1.3 billion valuation.
- March 2020: Arctic Wolf disclosed a Series D round of $60 million.
MDR Market Growth, Funding, Mergers and Acquisitions
Arctic Wolf appears to be growing rapidly. Still, actual revenue and net income figures are undisclosed, and the MDR market is crowded with competition.
Indeed, dozens of security companies and investors have focused long-term and/or pivoted aggressively into the MDR market. The reason: The global MDR market is forecast to have a 16.4 percent compound annual growth rate (CAGR) from 2020 to 2024, with worldwide revenues expected to reach $1.9 billion by 2024, Frost & Sullivan predicts.
Among the key MDR market developments that MSSP Alert has tracked so far in 2021:
- ActZero raised $40 million and launched the Summit Partner Program to promote MDR to MSPs, MSSPs & VARs.
- Bridewell Consulting received a private equity investment from Growth Capital Partners (GCP).
- Cybereason launched an MSSP partner program in North America to promote MDR capabilities.
- Dell Technologies & Secureworks introduced an MDR service to protect endpoints, data center networks & cloud services. Dell owns Secureworks, though rumors about the PC giant potentially selling the MSSP pop up from time to time.
- eSentire hired Digital Defense & Herjavec Group veterans Bob Layton & Erin McLean, respectively, for MDR & XDR security channel partner expansion.
- Huntress raised $40 million in Series B funding, which reinforced MDR momentum with MSPs that provide SMB security services.
- Kroll acquired Redscan for MDR, with MSSP, XDR (eXtended Detection & Response) & SOC telemetry expertise.
- OpenText, parent of Carbonite & Webroot, launched an MDR service for enterprise & midmarket customers.
- Red Canary raised $81 million in a Series C funding led by Summit Partners.
- Note: Track all MDR security news here.
MDR's Next Wave: XDR (eXtended Detection and Response)?
Still, all of that activity comes amid another potential market shift. Some MDR providers now emphasize more of an XDR security approach -- which provides a unified view of endpoint, network and cloud security, and more.