Cybersecurity Unicorn Island Raises $400 Million at $6.4 Billion Valuation

Cybersecurity startup Island announced on Thursday it has raised $400 million in its sixth funding round (Series F), achieving a valuation of $6.4 billion. This latest funding comes 18 months after its previous round, which valued the company at $4.8 billion. The investment underscores the significant capital flowing into cybersecurity unicorns, especially as the public markets remain largely inaccessible for initial public offerings.

Evolution Equity Partners led the Series F round, marking the first time the firm has led an Island funding round, though they have invested in the company previously. Evolution Equity Partners specializes in cybersecurity and artificial intelligence investments and has backed other Israeli companies like Armis, which was acquired by ServiceNow, and Talon, a former competitor to Island.

Island, co-founded by Dan Amiga and Mike Fey, offers a secure browser for enterprises designed as a safer alternative to Google Chrome and Microsoft Edge. The company has expanded its product line beyond the browser to include network security solutions that compete with established players like Check Point and Zscaler, and a new product called Control Plane for managing enterprise AI assets. Industry estimates suggest Island has surpassed $200 million in annual recurring revenue and employs 1,000 people, with 400 based at its development center in Tel Aviv.

Existing investors also participated in the round, including Sequoia, Cyberstarts, Prism Capital, Insight Partners, Coatue, G Squared, Georgian, Alta Park, Morgan Stanley, and True Ventures partner Dmitry Alperovitch. Amiga and Fey are experienced entrepreneurs, with Amiga having previously sold Fireglass to Symantec and Fey having held executive roles at Symantec and McAfee. They are also partners in the venture capital firm Picture Capital.