While KKR invested $410 million in NetSPI, Arctic Wolf got a $401 million infusion through convertible notes.

Two big fund rounds, both in excess of $400 million, showed investors’ willingness to back cybersecurity startups despite the dismal conditions in financial markets.

Minneapolis-based cybersecurity company NetSPI provides enterprise penetration testing and attack surface management by simulating cyber attacks for large enterprises and helping businesses defend against them. PE giant KKR has plugged $410 million into NetSPI as a growth investment. Taken with its previous $90 million investment in NetSPI in May 2021, KKR has a cumulative $500 million in backing for NetSPI.

“As we look forward to this next chapter, NetSPI will continue to challenge the status quo in offensive security,” said CEO Aaron Shilts in a release.

Meanwhile, Minnesota-based Arctic Wolf has raised $401 million in convertible notes led by existing investor Owl Rock. It enjoys strong customer demand for its cloud-based platform and cybersecurity outcomes. New and existing investors including Viking Global Investors, the Ontario Teachers’ Pension Plan, and funds advised by Neuberger Berman also participated.

Nick Schneider, Arctic Wolf’s president and chief executive officer said: “By bringing our holistic platform to our customers, we are bridging the security operations gap faced by businesses of all sizes.”

“Arctic Wolf addresses several of the key themes we see across the cybersecurity landscape: the challenge of monitoring and securing increasingly complex IT environments, the difficulty in keeping pace with sophisticated threat actors, the need to unify disparate and sprawling toolsets, and the major talent shortage in security,” said David Jar, managing director at Owl Rock, a division of Blue Owl Capital.

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