Island, a cutting-edge enterprise browser startup led by seasoned executive Mike Fey, has successfully closed its Series D funding round, securing $175 million to fuel international expansion and strategic acquisitions. This investment, led by Coatue and Sequoia Capital, propels Island’s valuation to $3 billion, a significant leap from its previous $1.5 billion valuation just six months prior.
With this funding, Island plans to strengthen its presence in continental Europe and the Asia-Pacific region, while enhancing its browser capabilities in anomaly detection and other areas. CEO Mike Fey emphasized the importance of global expansion, stating, “We’re poised for significant growth beyond North America, and this funding ensures we have the resources to tackle new markets effectively.”
Since emerging from stealth in 2022, Island has raised a total of $487 million, with a significant portion allocated to building infrastructure and securing marquee customers. Despite having a substantial war chest, Fey emphasized the need for additional resources to address customer demand, drive global expansion, and invest in R&D.
Island’s valuation has doubled in just six months, attributed to remarkable growth, strategic customer acquisitions, and a favourable macroeconomic climate. Fey highlighted the company’s multiyear head start in R&D and the complexity of the enterprise browser space as barriers to meaningful competition.
The company aims to increase its revenue from outside the United States from less than 15% to over 30% by the end of 2025, targeting opportunities in key markets like Germany, Benelux, Australia, Singapore, India, and Japan. Fey also hinted at potential acquisitions to integrate new capabilities and enhance the user experience.
Native R&D spending will focus on enhancing the browser’s resilience in malware-ridden environments, fueling automation, and integrating AI for anomaly detection and compliance. Client feedback has played a crucial role in shaping Island’s product development, particularly in areas like virtual desktop infrastructure, mobile device management, and web filtering.
Fey emphasized the importance of maintaining high annual recurring revenue growth, new customer additions, and a positive company culture with low attrition. Additionally, Island aims to educate the chief information security officer community about the benefits of an enterprise browser beyond enhanced security.
