Cyber Startup Armis Security Raises $200M At $4.2B Valuation

Cybersecurity firm Armis Security closed a $200 million Series D led by Alkeon Capital and General Catalyst.

The round boosts the company’s valuation nearly 25% to $4.2 billion. The San Francisco-based startup last raised  a $300 million private equity round in 2021 led by One Equity Partners at a $3.4 billion valuation.

The Series D also included participation from existing investors Brookfield Growth and Georgian.

The new cash comes just after Armis said it had surpassed $200 million in annual recurring revenue — growing ARR by an additional $100 million in less than 18 months.

The company is targeting an IPO in 2026, per Bloomberg.

In 2020, Insight Partners bought a large stake in the startup.

Industrial security

Armis is one of a handful of companies that plays in the industrial security — also called operational technology security — and IoT security spaces.

Cyber companies help companies protect large assets like manufacturing facilities and energy infrastructure. However, securing older industrial control systems that were designed decades ago — long before cyberattacks were a reality — have proven difficult to build.

The sector typically sees an ebb-and-flow of investment interest, but 2024 has been good for startups in the sector.

Earlier this year, New York-based Claroty secured $100 million in strategic debt/credit financing led by Delta-v Capital, and San Francisco-based Nozomi Networks locked up a $100 million Series E from investors including Mitsubishi Electric and Schneider Electric.

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Illustration: Dom Guzman