A little less than two years ago we wrote that by the year 2020 we’d see more than 20 billion connected devices in the enterprise, presenting a massive attack surface that can’t be secured by traditional security solutions. It’s what led Bain Capital Ventures to then lead a $30 million investment in Armis, the pioneer in IoT and OT security.
Well, it’s now 2020, and we couldn’t be prouder to see the incredible progress Armis has made in such a short time. Progress that was recently validated in the deal struck between Insight Partners and Armis to buy the latter for $1.1 billion. As the largest enterprise IoT security software acquisition ever, it’s clear that Armis stands in a formidable position, leading the movement to address a massive IoT and OT security challenge for enterprises globally.
We were first introduced to Yevgeny Dibrov and Nadir Izrael, co-founders of Armis, in early 2018. At the time, the company had a little over $1 million in ARR and had developed a new network-based approach for providing security for unmanaged devices.
While still early, we knew the two were a special pair. Yevgeny previously led global business development at Adallom, prior to its acquisition by Microsoft, and had killer commercial instincts. Meanwhile, Nadir was the former tech lead for Google Suggest, enabling him to master the technicalities of handling large data sets, but also to set the necessary strategic technology vision for Armis from the get-go. Their unique combination of entrepreneurial grit, domain expertise and technical depth is a large reason we were bullish on investing in the company.
Moreover, we were convinced of the market need and opportunity ahead. With devices exploding in and around the enterprise (Gartner now estimates north of 25 billion connected devices by 2025) and the fact that devices are the major ingress point to broader network-based security attacks, it’s easy to understand how the IoT security market is estimated at multi-billions today and counting.
Luckily, since our investment, this thesis has played out, and Armis has succeeded in becoming a leader in unmanaged device security.
We could not be more honored to have been a part of the journey and are very excited for the next chapter as Armis continues its market dominance in the device security market. Big congratulations to Yevgeny, Nadir and the entire Armis team on such an incredible milestone.