Armis Raises $435M at $6.1B Valuation

Cybersecurity Startups and the IPO Landscape

The cybersecurity industry represents a substantial market, yet companies within this space are statistically more inclined to be acquired rather than pursue an initial public offering (IPO). A prime example is Wiz, formerly the fastest-growing startup, which ultimately chose to be sold to Google instead of proceeding with its IPO plans earlier this year.

Recent years have witnessed a limited number of noteworthy cybersecurity IPOs. SentinelOne completed its IPO in 2021, while Rubrik went public last year. Netskope also entered the public market in September.

Armis Secures Pre-IPO Funding

Armis, a San Francisco-based cybersecurity startup established nine years ago, is now aiming to emulate the success of these publicly traded companies. The company announced on Wednesday a $435 million pre-IPO funding round, spearheaded by Growth Equity at Goldman Sachs Alternatives.

CapitalG contributed a substantial investment to this round, with the addition of Evolution Equity Partners as a new investor.

This funding round establishes Armis’s valuation at $6.1 billion, representing a considerable increase from the $4.5 billion valuation determined by a tender offer in August.

IPO Timeline and Strategic Direction

Armis anticipates launching its IPO in late 2026 or early 2027, as stated by its co-founder and CEO, Yevgeny Dibrov.

The current funding arrives following considerable acquisition interest in the company. Reports in September indicated that Armis had received seven acquisition offers, including a potential $5 billion bid from Thoma Bravo, a private equity firm.

However, this new capital injection signals Armis’s firm commitment to an IPO, a goal Dibrov personally considers a “dream.”

Financial Performance and Future Goals

According to Dibrov, Armis has achieved an annual recurring revenue (ARR) of $300 million. The company intends to increase this figure to $500 million and attain cash-flow positivity prior to its IPO.

Dibrov emphasized that the company is already operating with the discipline of a public entity, consistently meeting its quarterly financial objectives.

Armis delivers security solutions to critical infrastructure providers, serving Fortune 500 corporations, national governmental bodies, and state and local organizations.