Enterprise Browser Island receives capital worth $3 billion, ET Telecom – .

Island, a startup that makes secure Internet browsers for businesses, has raised new capital at a valuation of $3 billion.

The $175 million financing was led by existing investor Sequoia Capital and new investor Coatue. That doubles the $1.5 billion valuation the company achieved in a financing last year.

At a time when only a few non-AI-focused companies are able to raise significant funds, Island has attracted investment due to its early rise.

Doug Leone, a partner at Sequoia, said in an interview that Island addresses some of the security issues companies face as they move to the cloud and have more employees work remotely. “As technology evolves, new problems arise,” he said, adding that Island addresses emerging challenges for businesses related to VPNs and data loss prevention.

Leone expects Island to eventually go public, unlike Talon Cyber ​​Security, a smaller competitor acquired by Palo Alto Networks last year. “We think this company could do an IPO and beyond,” he said.

Michael Fey, co-founder and CEO of Island, said the new capital will be used for international expansion and acquisitions. “Mergers and acquisitions are definitely on the table,” he said.

Island is headquartered in Dallas and has its research and development center in Tel Aviv. The war between Israel and Hamas was a disruption because 10 to 15 percent of its Israeli employees were called into reserve but have since returned safely, Fey said.

Island has already raised $487 million to date, having just launched its product in 2022. Other investors include Capital One Ventures, Insight Partners and Cisco Investments.