It appears to be the end of the road for IronNet (OTCMKTS: IRNT), the once-promising network security play founded by former NSA director General Keith Alexander.
The company signaled grave financial distress in its latest SEC Form 8-K filing, warning it has run out of money and will furlough a majority of its workforce and severely scale back operations.
It’s a stunning end for a company that launched in 2018 with $78 million in funding and ambitious plans to cash in on an expanding market for enterprise-grade network security tools.
With Alexander at the helm, IronNet raised in excess of $400 million and rolled out its IronDome collective defense system that promised automated and real-time sharing of threat data and analysis between participating energy companies.
In tandem, the company sold an IronDefense platform that provided behavioral threat detection, visibility, and risk prioritization capabilities to organizations in the financial and energy sectors.
The company would go public in a SPAC transaction but struggled to gain traction in a highly competitive market that includes major vendors like Cisco and Palo Alto Networks and a cadre of well-capitalized startups.
This week, the company said it would furlough almost all its employees and “substantially curtail business operations.”
“The board of directors of the Company is continuing to evaluate strategic alternatives, including potentially seeking bankruptcy protection,” IronNet said.
Related: Ex-NSA Director’s IronNet Raises $78 Million
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