Less than a year after a $64 million investment, Atlanta cybersecurity startup Ironscales has more than doubled its office footprint in Sandy Springs as it anticipates growing to 100 employees.
The company spent under a year at a 4,000-square-foot office space in the “Queen Tower” at Concourse office park in Sandy Springs. This month, it moved into an 11,000-square-foot space on the 16th floor of the adjacent “King Tower.”
The amenities near the building will help the startup attract talent, said Ironscales Vice President of Corporate Marketing Jenna Knoblauch. A wellness center and a fitness facility are located on-site, and walking trails are in close proximity.
The move was motivated by recent staff increases and future hiring plans. Since December, the startup has grown its Atlanta-based staff from 22 to 30. It anticipates reaching a staff of up to 55 by the end of the year and 100 by the end of 2023.
Employees at the office will work under a hybrid model — required to be in-office three days out of the week and the ability to stay home the other two. Hybrid schedules have prevailed as one of the more popular models for Atlanta companies after the Covid-19 pandemic.
Ironscales' growth after Covid-19
The startup was founded in Israel in 2014 and moved its headquarters to Atlanta in recent years. It uses artificial intelligence for email security software platforms to detect and remedy emailed threats. It also has training and simulation modules so employees can learn to identify threats.
This year, the company was No. 55 in Atlanta Business Chronicle’s 100 Fastest-Growing Private Companies. It grew its revenue 202% and its staff 110% between 2019 to 2021.
In 2019, the company’s customer base stood at around 2,500. That number has grown to 7,000 and the company plans to “significantly” grow that number following its staff increases, Knoblauch said.
The global cybersecurity market is expected to grow at a compound annual growth rate of 12% by 2030, said Knoblauch. That growth is a result of an increase in device usage and cloud-based solutions from the Covid-19 pandemic.
“As people increase the number of devices that are used, they're more surfaces for people to attempt a cyber attack," said Knoblauch.
PSG, a Boston-based growth equity firm for software companies, led an investment into Ironscales in December to accelerate its growth. Before that investment, the startup raised a $15 million Series B in 2019 and an $8 million extension round in 2020.
Recruiting local talent
The company’s growth plans come as the startup scene has hit economic turmoil. Investors have pulled back from startups as they shift priorities from growth to profitability leading companies to preserve cash and sometimes lay off employees.
As employees in Atlanta’s startup scene experience layoffs, Ironscales is open to hiring them or helping their careers.
“For people impacted by layoffs, we want to have a conversation about resumes and skill sets that we potentially have opened. If not us, see if we can facilitate any kind of mentorship with them to help their career path,” said Knoblauch. “We want to be a safe harbor for our own staff, but also recruit from different sectors to help those impacted by layoffs.”
Fears of a recession could also provide Ironscales an opportunity for growth, said Knoblauch, because threat actors use such economic climates to capitalize on fears with financial scams. Last year's investment puts the company in a strong financial position.
As the startup grows in the coming months, it also looks to mentor local university talent. This summer, it piloted a university program with three college interns. Following the program’s success, it will begin the process of initiating an official program.
It will have a focus on Morehouse College, Spelman College, Kennesaw State University and Georgia State University. It plans to have 15 interns next summer.
