Network security company IronNet Inc. has ceased operations two years after it became a publicly traded company through a merger with a special-purpose acquisition company.

The disclosure came via a Sept. 29 filing with the U.S. Securities and Exchange Commission. IronNet said that given that it had run out of money, it had ceased all activities and terminated remaining employees. IronNet also disclosed that it had made a filing under Chapter 7 of the Bankruptcy Code.

Filing for Chapter 7 bankruptcy allows IronNet to liquidate assets to pay creditors through a court-appointed trustee. IronNet had previously considered filing for Chapter 11 bankruptcy to reorganize its debts and to keep the business operating but was unable to do so.

Founded in 2014 by Retired General Keith Alexander, a West Point graduate who previously led the U.S. National Security Agency, IronNet offered network security that allowed enterprises and nations to defend against emerging threats in real time. The company’s platform was claimed to transform how organizations secure their networks through its Collective Defense platform operating at scale.

The platform was aimed at helping information technology teams respond to cyberattacks more effectively and allowed organizations to share data with one another about new cyberthreats they encounter. If an organization was targeted by a previously unknown hacking tactic, the IronNet platform shared information on the attack with other IronNet users so they could prepare their network defenses accordingly.

The company raised $132 million in venture capital funding from investors, including Kleiner Perkins LLC, C5 Capital LP, Forgepoint Capital LP and the Phonix Insurance Co. Inc. before later going public. The SPAC merger saw IronNet raise $136.7 million on Aug. 27, 2021, on a reported $1.2 billion valuation.

The first signs of trouble at IronNet emerged in July when founder and Chief Executive Alexander was replaced by a new CEO and it was reported that IronNet was undergoing a restructuring with an aim to take it private. The new CEO, Linda Zecher, is also chairman of C5 Capital, a major shareholder, with the restructuring meant to “rescue IronNet.”

C5 Capital later provided additional capital to keep IronNet afloat and offered the board of IronNet a term sheet to fund the restructuring of the company on Sept. 2. However, in the end, it was too little, too late to save IronNet.

Photo: IronNet