According to TechCrunch, cybersecurity startup Armis has raised a $435 million pre-IPO funding round that values the company at $6.1 billion. The round was led by Growth Equity at Goldman Sachs Alternatives with significant participation from CapitalG and new investor Evolution Equity Partners. This represents a solid jump from their $4.5 billion valuation in August. CEO Yevegny Dibrov confirmed they’re targeting an IPO in late 2026 or early 2027, calling it his “personal dream.” The company has reached $300 million in annual recurring revenue and aims to hit $500 million while becoming cash flow positive before going public. Interestingly, this funding comes after Armis reportedly received seven acquisition offers, including a potential $5 billion bid from private equity firm Thoma Bravo.
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The road less traveled
Here’s the thing: in cybersecurity, getting bought is usually the expected exit. We just saw Wiz abandon its IPO plans to sell to Google, and that pattern repeats constantly. But Armis is taking the harder path. They’re basically saying no to quick paydays in favor of building an independent public company. And turning down seven offers, including one that would have netted them $5 billion? That takes serious conviction.
So why go public when acquisition seems easier? For starters, control. When you sell, you’re often absorbed into a larger entity’s strategy and culture. An IPO lets Armis maintain its identity and execution path. Plus, there’s the prestige factor – being a publicly traded company carries weight with enterprise customers and talent. But let’s be real: it also means intense quarterly pressure and living under the microscope of public markets.
What this means for customers
For the Fortune 500 companies and governments that rely on Armis for critical infrastructure security, this is actually pretty reassuring. When a cybersecurity vendor gets acquired, there’s always uncertainty about product direction, pricing changes, and integration headaches. Armis staying independent means continuity. They’re already “behaving like a public company” according to Dibrov, which suggests more disciplined operations and predictable roadmaps.
The $435 million war chest also means they can invest heavily in R&D without being constrained by a parent company’s budget priorities. In cybersecurity, where threats evolve daily, that ability to innovate quickly matters. Customers betting on Armis won’t have to worry about their security platform becoming someone else’s side project.
A rare cybersecurity IPO story
Look at the recent history: SentinelOne in 2021, Rubrik last year, Netscope in September. That’s not exactly a crowded field. The cybersecurity IPO landscape has been pretty barren, making Armis’s ambition notable. They’re betting they can join that small club of companies that successfully navigated from startup to public entity in this sector.
But here’s the challenge: public markets haven’t been kind to some cybersecurity stocks recently. SentinelOne’s stock has been volatile, and investors are getting more selective. Armis has given themselves a two-year runway to hit $500 million ARR and achieve cash flow positivity – both metrics that public investors will scrutinize heavily. If they can deliver on those targets, they might just pull off this “personal dream.” If not? Well, those acquisition offers might start looking pretty good again.
