From bootstrapped to billions: How Nord spent ‘hundreds of millions’ minting VPN customers to become Lithuania’s tech darling
Nord Security began as a hidden, bootstrapped company in one side of the world where Tech: Lithuania rarely champions: Lithuania.
But it wasn't long for this to be primary in niche (and sometimes expensive) security of cyber and virtual private network (VPN).
Tomas Okmanas and Eimantas Sabaliauskas saw this opportunity in 2012 while chasing the careers in it and decided to explore.
Nord applied simple logic to help it grow: people rely on the Internet for everyone, which means the demand for online security will only increase in time. In fact, it did-Nord found a huge market with surfers starving privacy.
Okmanas admitted that when the company was established, “no one cares” outside of some tech companies that seriously cybersecurity.
As they continue to build the Nord, cases and demand have grown. It also means that the founding duo needs to be accustomed to more than engineering.
“I need to know [about] Finance, the legal world, corporate management, and then how to run teams and companies, ”Okmanas said Fate Last year.
Identifying its VPN software, Nord allows users to use the Internet while protecting their data and IP addresses. This means more privacy for the average user when browsing the web – but technology is highly controversial.
VPNs can be used to spin Government restrictions on the web and attacked by Hollywood Film Studios for their use in violation of plunder and copyright.
But Lithuania -based nord is not disturbed by legal and ethical concerns. It focuses on strengthening the main case of its use of safe web use. Company servers will not log user data – which is part of the privacy spiel. There it is Argued That ad nauseum, and said Fate That people who use VPN only to access -locked or unavailable streaming services are “outdated.”
Okmanas says Nord's tools are rarely used for illegal or false purposes. The company also has systems in the area to prevent security violations and other online threats.
“Our goal is to really connect as much as possible to this Nord Cloud network, where people can use it safely,” he said.
The world of VPN and many more
Nord's broad stroke is noticeable: In 2022, 10 years after its establishment, it has been achieved Unicorn statushas more than 15 million users worldwide, and one of Lithuania's prominent companies (Vinted is another).
Okmanas said Nord has seen “massive growth” in recent years. In September 2023, the company raised $ 100 million in a $ 3 billion appreciation, almost twice as much as it raised a unicorn one year before.
The company went out shopping to help expand it. It announced a integration with surfshark In 2022 and bought competitor Ironwall this year, helping Nord grow its clout to Cybersecurity And beyond. Most Nord user base centers on the US and covers a wide range of age, while its remaining customers are a mixed bag of average internet users and small and medium-sized businesses.
Nord felt it – it was not uncommon to stumble upon its ads while listening to a podcast or watching a video on YouTube or Tiktok (its VPN was seen used by rapper Drake, Bloomberg reported). Okmanas said it was a deliberate effort to teach more people in Nord online tools. That's just one of the many ways the company has spent to get new customers on the board while online threats are constantly withdrawn.
“We spend a hundred -millions of dollars for our customer acquisition, and it works. Users see the value, and we're happy,” Okmanas said.
Nord's next steps
Nord has another building coming to Vilnius as it continues to expand it business. For companies a large enough size like Nord, an IPO seems to be a natural next step (at least what Airbnb and Uber have done, and this is one of the avenues Companies was attracted to).
But Nord doesn't see it. Their goal is the IPO's readiness but it is not necessary to go public right away, as it is a great barometer where the company stands.
“We have a huge ambition but don't need to make an IPO,” Okmanas said. Nord may have started, but it has been useful on a basis for cash flow from the beginning. It became evil-positive last year.
He said Nord had no deadline but wanted to prepare it so that it was ready for an IPO to “press a button.”
“But sure, we don't need it, and we won't do it for the next six months or a year,” Co-Co said.
“We were in a lucky position where we were growing very fast, and we were very good -benefit.”
A version of this story was originally published in Fortune.com In Sep. 30, 2024.
This story was originally featured on Fortune.com
