IronNet, a cybersecurity company that went public only two years ago and started with an optimistic future, has shut down for good. Unfortunately, shutting down also forced them to lay off every one of their employees.
The company was founded by former NSA employee and four-star general, Keith Alexander. He left the NSA after the famous whistle-blower, Edward Snowden, pulled off the largest NSA leak in history.
Alexander served as the CEO until July when he was replaced with Linda Zecher. Previously, she served as the chairperson of IronNet’s largest investor C5 Capital, and after taking over injected more than $1.2 million to keep the company afloat last month.
The original goal of IronNet was to provide companies and governments with behavioral analysis, network detection, and other advanced cybersecurity solutions. Since 2018 it received more than $400M in funding. This includes $5.6 million in federal loans during COVID-19.
“The Company does not anticipate that it will be able to pursue bankruptcy protection under Chapter 11 of the Bankruptcy Code, in which case it will be necessary to pursue bankruptcy protection and make a Bankruptcy Filing under Chapter 7 of the Bankruptcy Code,” the company explained in a statement.
This means that the company was forced to liquidate (meaning to sell off) all of its assets to pay for its debts. This is more severe than a Chapter 11 bankruptcy, which allows a company to maintain its day-to-day operations while repaying the debt.
The company had previously cut 17% of its workforce in June. The company may have had a promising start, but after going public in August 2021, the company was unable to find its footing in the market. Its stock price had an initial surge after going public, but since then its stock price gradually plummeted.
Shareholders are also taking a hit in the bankruptcy. The company said that it “expects that no distributions would be available for stockholders.”