Cyber Startup Island Hits Unicorn Status 7 Weeks After Launching

Earlier this year we talked about how unicorns had been minted after early-stage fundings at an unprecedented rate in 2021 and wondered if that could continue.

While it seems unlikely with the slowdown in funding, that doesn’t mean there will not be any young unicorns— and Dallas-based Island may be all alone in the time it took to hit that status.

The company raised a $115 million Series B at a $1.3 billion valuation. The new round was led by Insight Partners, with participation from existing investors Stripes and Sequoia Capital. The company had just announced a $100 million Series A simultaneously with it coming out of stealth on Feb. 1.

Island offers an enterprise browser that the company says enhances both security and productivity of workers, giving security teams control of what is often referred to as the “last mile”—how end-users interact with work and web applications.

Gaining a valuation that fast has pluses and minuses. While it may enhance a company’s reputation, it can be hard to perform and grow into that valuation. That can lead to down rounds and even tension within the company, which can create an atmosphere where it starts to chase revenue numbers, sometimes hindering growth and innovation.

However, Island plays in cybersecurity—a sector where it seems investors can never invest enough. After a record year last year, cyber seems off to a strong start in 2022.

Island also is not alone in the security space as a 2022 unicorn. A handful have been newly minted already this year including eSentire, Beyond Security, Salt Security, Aleo, Veriff and SparkCognition.

Illustration: Dom Guzman