(Bloomberg) — Enterprise software and security startup Island Technology Inc. is raising money at a $4.5 billion valuation in a round led by investment firm Coatue Management, according to people familiar with the matter.
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The deal shows venture capital firms are still optimistic about cybersecurity startups, even as artificial intelligence deals capture the majority of VC attention. Last year, cyber companies raised $9.5 billion, up almost 10% from 2023, according to cybersecurity recruitment firm Pinpoint Search Group.
Representatives for Island and Coatue didn’t comment on the deal.
Island, which has offices in Dallas and Tel Aviv, makes secure internet browsers for businesses. The product was launched in 2022. The company previously raised almost $500 million from investors including Sequoia Capital, Insight Partners and Israeli VC firm Cyberstarts. It last raised money in early 2024 at a $3 billion valuation.
The startup is led by Chief Executive Officer Mike Fey, a former executive at McAfee, and Chief Technology Officer Dan Amiga, the former vice president of engineering at Symantec Corp.
Island offers security and productivity features within its browser that are tailored to enterprises. Its customers include hotel chains, banks, retailers and small businesses.
(Updates list of investors in fourth paragraph.)
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