Island's $6.4 billion round prices the company at 32 times revenue

Island's valuation has more than doubled since 2024 ^[4]. That comparison starts from the $3 billion set by a $175 million round that year ^[3], and against that base the new price is about 2.1 times higher ^[2]. The more recent reference is March 2025, when Island raised $250 million at $4.8 billion ^[3]. From there the step-up is 33 percent, down from 60 percent between the 2024 and 2025 rounds ^{[1] [10]}. Island says its annual recurring revenue has doubled in every fiscal year since its 2022 launch ^[6]. If that held across the 18 months between the March 2025 round and the September 2026 revenue figure ^[9], sales at least doubled while the price rose by a third. In that case each dollar of revenue costs investors about a third less than it did at the last round ^[4].

Calcalist reports revenue of about $200 million by September 2026, growing at about 100 percent a year ^[5]. On those figures $6.4 billion is 32 times current revenue, or about 16 times next year's if the growth rate holds ^[3]. The $400 million buys roughly 6 percent of the company ^[5]. The reports do not say whether the valuation is pre- or post-money, what preferences the new shares carry, or how much of the $200 million comes from agent products.

The revenue behind that multiple comes from the enterprise browser Island launched with. The company says eight of the world's 10 largest banks use it ^[12], and CNBC lists Pfizer, Chipotle and American Airlines among its customers ^[13]. Governing AI agents is the plan for the next stage, built around what Island calls an "agentic control plane" covering endpoint, network, data, identity and observability ^[7]. "Agents do not operate in a single layer of the technology stack, so they cannot be governed from one," co-founder and CTO Dan Amiga said ^[8].

The comparison between rounds can mislead. Fiscal years and round dates need not line up, so growth between March 2025 and now could have been less than twofold. The agent pitch may also be the reason the multiple fell by only a third, and a single private round cannot separate that effect from the browser's growth. Allowing for both, I think investors paid for a browser business doubling at $200 million and added little for agents. A buyer paying a premium for the agent plan would have pushed the step-up past revenue growth, and on the company's own numbers the step-up fell short of it. The view is wrong if Island shows that agent products already make up a meaningful share of sales, or that revenue grew well short of twofold between the rounds.

The $400 million is 40 percent of the roughly $1 billion Island has raised ^[6]. According to CNBC, Island plans to spend on research and development and on expansion into Europe, Asia and the Middle East ^[10]. Chief executive Mike Fey said headcount will rise from 1,000 to 1,500 by the middle of next year ^[9]. That 50 percent increase ^[7] comes after growth from more than 500 staff a year earlier ^[11]. Revenue per employee is about $200,000 today ^[8]. Rivals include Palo Alto Networks and a roster of startups ^[14]. "Every old control is breaking, so everything's up for grabs," Fey told CNBC ^[15].