Cybersecurity is a massive sector, but startups in this category are more likely to be acquired than to go public. Even Wiz, which for a time held the title of the fastest-growing startup, abandoned its IPO ambitions when it agreed to sell to Google earlier this year. In the past few years, there have been very few significant cybersecurity listings. SentinelOne went public in 2021, Rubrik did so last year, and Netscope went public in September.
Armis, a nine-year-old cybersecurity startup based in San Francisco, intends to follow in these companies’ footsteps. The company said on Wednesday that it has raised a 435 million dollar pre-IPO round led by Growth Equity at Goldman Sachs Alternatives. CapitalG made a significant investment in the round, and new investor Evolution Equity Partners also participated. This round values Armis at 6.1 billion dollars, a meaningful jump from the 4.5 billion dollar tender offer valuation the startup announced in August.
Armis is hoping to launch its IPO in late 2026 or early 2027, according to its co-founder and CEO, Yevegny Dibrov. This new funding round comes after the company received significant acquisition interest. In September, it was reported that Armis had received seven offers, which included a potential 5 billion dollar bid from private equity firm Thoma Bravo. The new funding is an indicator of how serious Armis is about an IPO, a move which Dibrov described as his personal dream.
According to Dibrov, Armis has reached annual recurring revenue of 300 million dollars and plans to take that figure to 500 million dollars while becoming cash flow positive before its IPO. The startup is already behaving like a public company, Dibrov said, adding that the company is ensuring it hits its quarterly financial targets. The company provides security software for critical infrastructure to Fortune 500 companies, national governments, and state and local entities.