Lithuanian Cybersecurity Firm Nord Security Witnesses Remarkable Growth
Nord Security, a company based in Lithuania, has experienced substantial growth over the past 12 years. It has expanded its operations to encompass almost 1,700 employees across five European cities and now serves 15 million users globally. Although Nord Security is particularly known for its VPN service, NordVPN, the company has diversified its offerings to include various cyber protection services catering to individuals and small businesses, with a vision to become the world's largest cybersecurity entity.
The company, which was bootstrapped for a decade, secured $100 million in two growth rounds in 2022 and 2023, attaining unicorn status with valuations of $1.6 billion and $3 billion, respectively. Notably, investors such as Warburg Pincus, Burda Principal Investments, and General Catalyst contributed to this milestone. The founders, Tom Okman and Eimantas Sabaliauskas, emphasized the value of investors' expertise and network, even though they initially did not require the funds, as it served to prepare the company for a potential IPO.
Nord Security's journey commenced in Lithuania in 2012, where tech startup funding was limited. The founders initially sustained the company through user subscriptions, laying the groundwork for their subsequent growth and operations. Despite encountering challenges such as disproportionate spending on Google ads and operational hurdles, the company prospered, transitioning through various office locations before establishing its presence in a renovated sock factory in Vilnius's Cyber City.
Presently, Nord Security offers a comprehensive range of cybersecurity products, including VPN, encrypted cloud storage, dark web monitoring, and eSIM cards with cybersecurity features. Additionally, with over 90% of its revenue stemming from B2C sales, the company has achieved profitability and EBITDA-positive status, with the US and Europe representing its principal markets.
Looking ahead, Nord Security remains open to acquisitions, having recently acquired a US-based competitor, IronWall. The founders are mindful of the integration of new companies, prioritizing cultural alignment and employee retention. Their ambitions extend to positioning Nord Security as the global frontrunner in the cybersecurity industry, with an underlying objective to positively influence Lithuania's economy and contribute to the development of Vilnius.
Key Takeaways
- Nord Security has flourished into a formidable force with nearly 1,700 employees and 15 million users worldwide.
- The company's aspiration to be the foremost global cybersecurity firm is underpinned by its diversification beyond NordVPN.
- Securing $100 million in two growth rounds propelled Nord Security to attain unicorn status with valuations reaching $3 billion, despite the founders' initial independence from external funding.
- The company's strategic outlook includes continued acquisitions to expand its service portfolio.
Analysis
Nord Security's rapid expansion, bolstered by strategic funding and acquisitions, positions the company as a prominent player in the global cybersecurity domain. The infusion of capital from notable entities not only affirms its market potential but also amplifies its operational capabilities and investor network. This growth bears direct positive impacts on Lithuania's tech sector, indirectly contributing to the enhancement of European cybersecurity standards. In the short term, it is poised to elevate market share and drive technological innovation, while in the long run, it stands to potentially redefine industry norms and significantly elevate Lithuania's economic standing. Moreover, the company's emphasis on cultural integration and staff retention amidst acquisitions underscores its commitment to sustainable growth and industry leadership.
Did You Know?
- Bootstrapped Company: In the context of Nord Security, a bootstrapped company characterized its inception and growth using solely internal resources without external funding. At the onset, the company relied on revenue from operations and the founders' personal savings, portraying self-sufficiency and prudent financial management before eventually opting for external investment.
- Unicorn Status: Nord Security's attainment of unicorn status, denoting a private startup valued at $1 billion or more, highlights its rapid growth trajectory and market potential. This achievement signifies a significant milestone for the company, underscoring its exceptional progression.
- eSIM Cards with Cybersecurity Features: The introduction of eSIM cards with built-in cybersecurity measures showcases Nord Security's strategic alignment with mobile device connectivity. By integrating cybersecurity directly into mobile internet services, the company offers heightened protection against cyber threats, particularly catering to users reliant on mobile internet access.