Arctic Wolf Networks, a security operations center (SOC) services startup, raised $16 million in new funding, bringing its total to $43.2 million raised.
The company, founded in 2012, will use the investment to grow its business and meet customer demand for SOC services, said Brian NeSmith, CEO and co-founder. “We’re approaching 300 customers,” he said. “By the end of this year, it will easily be twice that.”
Sonae Investment Management led the Series C round with Lightspeed Venture Partners, Redpoint Ventures, and Knollwood Investment Advisory also participating.
It follows a banner year of funding for security startups. In 2017, venture capitalists invested the highest amount of capital of the past decade in the industry, according to PitchBook. As of late December, they had pumped about $4.2 billion into security companies, passing the previous high reached in 2015.
Arctic Wolf’s cloud-based CyberSOC means companies don’t have to build their own SOC, NeSmith said. He and Co-founder Kim Tremblay, who worked together at Blue Coast Systems, decided to “build something that can digest a lot of log data and turn a lot of noise into valuable insights with monitoring and understanding of what’s going on,” said NeSmith. “We set out to build from the ground up a turnkey service to monitor a network in a continuous, repeatable way.”
The service includes cloud-based security, information, and event management (SIEM). It collects on-premises network flow and log data, and it also monitors companies’ cloud-based applications and infrastructures. This includes, among others, Amazon Web Services (AWS), Microsoft Azure, Google Apps, Microsoft Office365, and Salesforce.
It uses Arctic Wolf human security engineers as well as machine learning to analyze the data and respond to threats.
Customers are typically midmarket companies, between 200 and 2,000 employees, across health care, financial services, and retail, as well as the City of Sparks, Nevada.
The company also recently launched a program for managed service providers to deliver SOC as a turnkey service to their customers.
**Update 1/25/18: This story has been updated to correct the total amount of funding to $43.2 million, which was incorrectly provided to SDxCentral, initially, as $49 million.