$4 billion startup Arctic Wolf seeks advisors for IPO

A top executive told Reuters that Arctic Wolf, a company with funding at a valuation of $4 billion, is looking to hire financial advisors for a stock market listing early next year in the United States.

Arctic Wolf is expected to finalize its advisors for its initial public offering IPO in the coming months and has started interviewing investment banks.

In a private funding round in July, the company raised $150 million from investors including Owl Rock and Viking Global Investors.

Arctic Wolf benefitted from higher investments in security solutions during the epidemic, as remote working arrangements forced companies to spend more on software tools that counter security threats.

According to Chief Executive Nick Schneider, the Eden Prairie, Minnesota-based startup is aiming to go public in the second half of 2022.

Our growth is due to the impact of COVID on businesses and it's also related to digital transformation. Schneider said that there were people starting to work from anywhere who need protections on their internal network.

Schneider took over as CEO in August, spearheading Arctic Wolf's efforts to expand internationally, as it tries to put a governance structure in place before it goes public.

Arctic Wolf was founded in 2012 and provides security software tools and services to detect and help companies recover from cyber threats. Its services are used by enterprises in a number of industries, including healthcare, financial services, and manufacturing.

Arctic Wolf generates revenue through a subscription model that has grown by over 100% in the past year, it said.

Lightspeed Venture Partners and Redpoint Ventures are among the investors of the company.