Ironnet, a cybersecurity and defense company founded by the former director of the NSA, has closed down and laid off its remaining staff after filing for bankruptcy. The company had received investments from various cybersecurity and defense investors.
In a statement by Ironnet’s President and Financial Director, Kameron Piforon, it was announced that the company has ceased all business operations in preparation for filing for Chapter 7 bankruptcy. This type of bankruptcy will result in the liquidation of the company’s remaining assets in order to repay debts. The statement can be found here.
Ironnet, based in Virginia, USA, was founded in 2014 by retired General Kate Alexander, shortly after his departure from the NSA due to the Edward Snowden leaks, which was one of the largest breaches of state secrets at that time. The company offered cybersecurity technologies to corporations and government agencies, utilizing big data and analytics for automated threat intelligence. It also developed products for protecting critical infrastructure.
Ironnet had managed to attract over $400 million in investments, with one of its notable customers being Thomson Reuters, a major media company. Additionally, the company received federal loans amounting to $5.6 million, which were allocated to small businesses during the COVID-19 pandemic.
However, after going public in August 2021, the company struggled to find its place in the market, and the value of its shares continued to decline after an initial growth. By the following year, Ironnet had less than 100 corporate clients and had already reduced its staff by 17% in June 2023.
Aleksander, the founder of Ironnet, served as the executive director until Linda Zeker, the chairman of C5 Capital, Ironnet’s largest investor, took over in an effort to save the company. C5 Capital had invested over $1.3 million in Ironnet in September to prevent its total collapse. Other investors, including Forgepoint Capital and Kleiner Perkins, have not commented on the company’s bankruptcy. Ironnet also stated that it does not anticipate any distribution of funds among shareholders. Aleksander will continue to serve as the chairman of Ironnet’s board of directors and is also a board member of Solcyber.