“COVID-19 has exposed massive vulnerabilities with outdated, hardware-based Cybersecurity solutions and accelerated the timeline of moving away from the old method of securing physical office perimeters. Implementing modern architecture that provides network security in the cloud is the best way to ensure safety and productivity, even as remote workers rely more and more on fast connections for things like video meetings and online productivity apps.”
– Paul Martini, iboss CEO
“iboss has created the largest, most modern and comprehensive SASE security platform on the market and is the only platform that can fully transition organizations from on-prem security appliances to SaaS security delivered in the cloud. What makes this stronger is that iboss is an open security platform that allows organizations to apply the security engines and log analytics platforms of their choosing compared to existing closed SASE solutions that lack this flexibility and restrict better security due to lack of collaboration with top cybersecurity intelligence vendors.”
– Dave DeWalt, Founder of NightDragon and Co-Chairman of iboss
“We are thrilled to partner with iboss and participate in this growth financing. As the traditional enterprise perimeter dissolves, security solutions need to enable safe access to apps and services anytime, anywhere. iboss’ cloud-first solution was designed to address this transformational infrastructure shift.”
– Scott Eisenberg, Head of Credit at Francisco Partners
Transaction Overview
- iboss, a leader in cloud delivered network security, announced it has raised $145 million in new funding led by NightDragon and Francisco Partners
- The new funding comes as the COVID-19 pandemic has accelerated the ongoing shift to cloud-based cybersecurity providers. As organizations of all sizes continue to rely more on distributed and dispersed workforces, they need cybersecurity solutions that follow the user — regardless of where they are located or what device they are using — with the same security procedures and protection that they would have in the office
- The unique, cloud-native iboss platform constantly defends organizations from cyberattacks by screening and securing all internet traffic in the cloud, regardless of device or location
- iboss is a Boston-based cloud security company founded by twin brothers Paul and Peter Martini in 2003. The company provides organizations and their employees fast and secure access to the Internet on any device, from any location, in the cloud. Leveraging a purpose-built cloud architecture backed by over 190 issued and pending patents and more than 100 points of presence globally, iboss protects more than 4,000 organizations worldwide, including a large number of Fortune 50 companies
- The investment firms NightDragon and Francisco Partners acquired minority stakes in iboss in this latest round, bringing the total venture capital that the company has raised over the years to $195 million
- NightDragon cofounder Dave DeWalt, a prominent cybersecurity executive who previously led companies such as McAfee, Mandiant, and FireEye, became co-chairman of iboss alongside CEO Paul Martini
- Momentum Cyber served as exclusive financial advisor and Goodwin Procter LLP served as legal counsel to iboss for this financing. Francisco Partners was advised by Akin Gump Strauss Hauer & Feld LLP as its legal counsel
Transaction Significance
- The financing will be used to support the Company's rapid growth as organizations increasingly recognize iboss as the leading provider of cutting-edge network security through the cloud
- iboss seamlessly enables a consolidation of networking and cutting-edge security into a Secure Access Service Edge (SASE) model that operates and provides cybersecurity protection in the cloud. As dispersed workforces increasingly connect to cloud applications such as Microsoft Office 365, Zoom and others, iboss provides infinite scalability while ensuring fast, secure and compliant connections
- The iboss platform directly connects users to offices as well as cloud applications, eliminating the need to route internet traffic through centralized, on-premise appliances. By delivering network security as a service via the cloud, iboss eliminates the need for expensive, hardware-based security and legacy infrastructure
- The company's proprietary architecture is built for the cloud from the ground up, allowing organizations to migrate security features and policies — such as web gateway proxies, network firewalls and Zero Trust Network Access — directly to the cloud
- An open platform means that by leveraging iboss as the secure connectivity foundation for an organization, it allows flexibility in choice for malware engines, malware feeds, threat intelligence and log analytics solutions by allowing them to easily connect through the iboss SASE service
- The SASE market is estimated at $25 billion and represents a transformational infrastructure shift as the traditional enterprise perimeter dissolves and organizations need solutions that enable safe access to apps and services anytime, anywhere
Momentum Cyber's Role
- Momentum Cyber acted as exclusive financial & strategic advisor to iboss
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and its proven track record advising leading SASE, cloud security, and network security providers on strategic growth financing transactions
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.