Armis Raises $435M Pre-IPO Round at $6.1B Valuation

Armis has successfully raised $435 million in a pre-IPO funding round, achieving a valuation of $6.1 billion. This round was led by Growth Equity at Goldman Sachs Alternatives, with significant contributions also from CapitalG and new investor Evolution Equity Partners, according to TechCrunch.

The funding comes after Armis received multiple acquisition offers, including a reported $5 billion bid from Thoma Bravo. However, the company has expressed a strong commitment to pursuing an IPO instead, marking a notable shift in strategy as many cybersecurity startups typically opt for acquisitions over public listings.

CEO Yevgeny Dibrov articulated that going public is a personal dream for him, and he aims for the IPO to launch in late 2026 or early 2027. Armis has reported reaching an annual recurring revenue of $300 million, with plans to increase that to $500 million and achieve cash-flow positivity before the IPO.

This proactive approach reflects a belief in its growth potential, as emphasized by Dibrov, who noted that the company is already operating with the discipline of a public entity. The cybersecurity sector remains a highly competitive field, with few substantial public offerings in recent years.

Other companies like SentinelOne, Rubrik, and Netskope have made successful market entries, but the appetite for M&A remains strong, with many startups like Wiz opting for acquisition routes. Nevertheless, Armis's recent funding round signals growing investor confidence in cybersecurity solutions, which are crucial for protecting critical infrastructure and data.

The firm's focus on providing security software to Fortune 500 companies and governmental entities positions it well for future growth and a possible strong market entry as it prepares for its IPO.