Island, an enterprise browser company, recently announced a $175 million Series D investment at a valuation of $3 billion. With a total funding of $487 million, the company has attracted significant investment. So, what makes Island so valuable?
One of the key factors that drew investors in is the company’s founding team and their unique value proposition. Co-founders Dan Amiga, a technical founder from Israel, and Mike Fey, a senior security executive from the U.S., had a vision to create a secure browser based on Chromium. This browser would appear like a standard browser to employees in a corporation but would offer enhanced security features. Doug Leone, a partner at Sequoia who invested in Island from its early stages, recognized the potential in this approach.
By utilizing the browser as a central security tool, Island aims to reduce overall security costs for enterprises. Traditional tools like VPNs, data loss prevention, and mobile device management can be replaced by functionalities integrated into the browser. This approach not only streamlines security operations but also lowers expenses associated with securing a network.
Island is pioneering the concept of an enterprise browser, enabling employees to work within a familiar environment while ensuring their security. Ray Wang, founder and principal analyst at Constellation Research, explains that Island is leveraging the security angle to revolutionize human computing interactions. He compares the browser to a “Choose Your Own Adventure” game, where data captured can deliver contextually relevant content, actions, and insights while maintaining enterprise-class data security.
One of the advantages of Island’s browser is that it is built on the Chromium standard. This means that IT departments can trust the browser without requiring extensive testing for compatibility with various applications. Mike Fey acknowledges that if Island had introduced a proprietary browser, large companies with numerous apps would have faced significant testing efforts. However, thanks to the standardized Chromium framework, this hurdle is eliminated.
Despite the compelling value proposition and standardized approach, Fey admits that it can be challenging to persuade executives to invest in a security-focused browser. To convince them, the return on investment (ROI) must be tangible and convincing. Fey cites an example of a company that saved $300 million annually by shutting down racks in their data center due to reduced resource requirements after adopting Island’s browser.
Fey clarifies that Island’s goal is not to replace existing tools but to make executing web filtering and virtual desktops simpler through a standardized browser. The company has invested significant engineering work into achieving this goal, with 100 out of its 280 employees being engineers.
Although specific revenue numbers were not disclosed, Island has steadily grown over the past few years, attracting approximately 200 customers. Doug Leone characterizes this growth as exponential. Looking ahead, Fey envisions Island becoming a substantial public company in the future, with strong annual recurring revenue (ARR) and favorable profit margins. While an initial public offering (IPO) is not imminent, Fey believes that Island has the potential to become a compelling IPO candidate someday.
