Armis, which provides IoT device security software, raises $125M led by Brookfield Technology Partners at a $2B valuation, bringing its total funding to $300M
'We are building our business with the support of Brookfield now, the folks at Insight and CapitalG, towards an IPO …
Context & Ripple Effects
This round closes the loop on a fast reversal: barely a year after Insight Partners took Armis private at a $1.1B valuation, the IoT security vendor is back on the capital-raising path at $2B — nearly double the take-private price — with its earlier venture rounds ($30M Series B, then $65M from Sequoia) having totaled just $112M before the acquisition. Management frames the Brookfield-led $125M explicitly as runway toward an IPO.
The investor mix matters as much as the size: Brookfield Technology Partners is an alternative-asset manager stepping into growth-stage security software, alongside existing backers Insight and CapitalG. The trajectory held — Armis went on to raise $300M at $3.4B nine months later and reached a $6.1B valuation in 2025.
First-order effects
- Insight marks up its $1.1B purchase to a $2B valuation within roughly a year while retaining its stake into the IPO-track phase, and Armis gets $125M to expand device-security sales ahead of a listing.
Second-order effects
- Brookfield's entry signals that infrastructure-scale asset managers will compete with traditional VCs and PE for late-stage security assets — raising valuations rivals must fund against, and validating the buy-grow-IPO playbook Insight ran here for other portfolio security firms.
Third-order effects
- If the pattern holds, unlisted-but-profitable enterprise security companies increasingly finance scale-up through alternative-asset managers rather than public markets, delaying IPOs until valuations have compounded privately — a structural shift in who underwrites the software industry's middle tier.
The trend: Alternative-asset giants like Brookfield are replacing venture and public capital as the funders of late-stage enterprise software, stretching the private path from buyout to IPO.