California-based Arctic Wolf to Relocate HQ to Minnesota
In a rare move, cybersecurity firm Arctic Wolf is moving its global headquarters from Silicon Valley to Silicon Prairie.
On Thursday, the company announced plans to relocate its global HQ from Sunnyvale, California, to Eden Prairie. The news comes as the company closes on a $200 million Series E funding round — one of the largest for a Minnesota company this year.
So, why would a California startup flush with fresh financing settle in Minnesota? CFO Nick Schneider said there are a few reasons.
“It’s a central location for our partners and customers, but also for our additional offices,” he said. Arctic Wolf, which sells its cybersecurity products and services in every state and parts of Canada, has maintained an office presence in Eden Prairie since 2016. Last summer, the company significantly expanded its office footprint in Minnesota.
But the “most critical reason” for the relocation is access to the wide pool of tech talent in the Twin Cities area, Schneider said.
Arctic Wolf already employs about 200 people at the Eden Prairie office. Those employees primarily work in sales, marketing, and customer support. But with the relocation, the office will soon be home to developers, security operations teams, and other more tech-minded workers.
With the Series E funding in hand, the company plans to add about 150 more employees at the Eden Prairie office. Arctic Wolf will also use some of the proceeds to build a third security operations center. (The company’s entire headcount hovers around 600.)
Since its inception, Arctic Wolf has raised $348 million in total. Schneider says the company is now valued at about $1.3 billion, which would make it another “unicorn” startup, like health insurance startup Bright Health. Viking Global Investors led Arctic Wolf’s latest fundraising round. (Despite the name, the investment firm is headquartered in Connecticut, not Minnesota.) Deutsche Telekom Partners Management and other existing funders also participated in the round.
As legions of white-collar workers shift to remote work, Arctic Wolf has only seen demand for cybersecurity products and services grow.
“The world that we live in — security and security operations — has accelerated as a result of the pandemic,” Schneider said. “We’ve seen security belts get even tighter. Companies are looking to get more out of their solutions. There are more threats. And you could argue that the remote workforce is riskier. All those trends are bringing business our way.”
Due to the sensitive nature of cybersecurity work, Schneider declined to name any current customers. But he notes that the company serves everything from small businesses to large-scale enterprises.
“The problems that we solve … are not pinned to any one size of account or one vertical market,” Schneider said. “It’s a problem that the collective business community is trying to solve, and we’ve found a way to solve it for any type of company.”