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§ Private Profile · Redwood City, CA, USA
Cybersecurity and privacy software company developing Hotspot Shield VPN for internet security, privacy, and censorship circumvention.
AnchorFree has raised $295.0M across 1 funding round.
Key people at AnchorFree.
AnchorFree was founded in 2005 by Eugene Malobrodsky (Founder).
AnchorFree has raised $295.0M in total across 1 funding round.
Based in Redwood City, California, AnchorFree is a cybersecurity software company that develops virtual private network applications designed to provide internet privacy, secure Wi-Fi connections, and censorship circumvention tools for consumers and enterprise clients. The organization operates a freemium business model centered around its flagship Hotspot Shield application, which encrypts user traffic and has accumulated over 650 million global downloads. Prior to its corporate restructuring, the enterprise raised approximately $358 million in total venture funding from prominent institutional investors including Goldman Sachs, Accel, and WndrCo. Following a $295 million investment round in 2018, the company officially rebranded its corporate identity to Pango before ultimately being acquired by digital security firm Aura in 2020. To address growing global demands for secure internet access, AnchorFree was founded in 2005 by technology entrepreneurs David Gorodyansky and Eugene Malobrodsky.
Key people at AnchorFree.
AnchorFree has raised $295.0M across 1 funding round. Most recently, it raised $295.0M Pango - Other Equity in September 2018.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Sep 5, 2018 | $295M Venture Round | Sujay Jaswa | 8VC, Sameer Gandhi, Green BAY Ventures, SignalFire | Announced |
AnchorFree was founded in 2005 by Eugene Malobrodsky (Founder).
AnchorFree has raised $295.0M in total across 1 funding round.
AnchorFree's investors include Sujay Jaswa, 8VC, Sameer Gandhi, Green Bay Ventures, SignalFire.
AnchorFree is an internet privacy and security company best known for its flagship Hotspot Shield VPN service, which enables secure and private web browsing for consumers and businesses through a freemium model offering free basic features and paid upgrades like unlimited bandwidth and enhanced speeds.[1] Founded in 2005 and headquartered in Redwood City, California, it developed a suite of VPN apps including Hotspot Shield, Betternet, VPN 360, HexaTech, and TouchVPN, serving over 650 million downloads worldwide by addressing rising demand for online protection amid events like data breaches and net neutrality changes.[1] Acquired in 2020 by Aura (via its purchase of parent Pango Group), AnchorFree's technologies now integrate into Aura's AI-powered digital safety platform, solving core problems of data privacy, cyber threats, and restricted access with proprietary Hydra technology for speed and security.[1]
The company targets individual users seeking free or premium VPN access and businesses needing secure browsing tools, with strong growth evidenced by $358 million in total funding, including a $295 million round in 2018 from WndrCo.[1]
AnchorFree was co-founded in 2005 by David Gorodyansky and Eugene Malobrodsky, close friends who recognized the need for accessible internet privacy tools amid growing online threats.[1] Gorodyansky serves as CEO, leading the company from its Redwood City base with additional offices in Ukraine and Russia.[1] The idea emerged from developing mobile apps for secure surfing, launching Hotspot Shield** as its breakthrough product, which quickly became the top-grossing productivity app in the Apple App Store.[1]
Early traction accelerated post-2017 events like the Equifax breach and KRACK vulnerability, driving user growth to over 650 million downloads; a pivotal 2018 funding round of $295 million from WndrCo solidified its scale before the 2020 acquisition by Aura, marking its evolution into a broader cybersecurity ecosystem.[1]
AnchorFree rides the explosive VPN and cybersecurity trend, fueled by escalating data breaches, surveillance concerns, and remote work demands, where market forces like regulatory shifts (e.g., net neutrality repeal) and vulnerabilities (KRACK, Equifax) boosted its 650 million downloads.[1] Its timing was ideal: launching in 2005 positioned it ahead of mobile privacy booms, influencing the ecosystem by popularizing freemium VPNs and pressuring competitors on speed and accessibility via Hydra tech.[1]
Post-2020 Aura integration amplifies its role in all-in-one digital safety, contributing to consolidation in cybersecurity where Israeli-rooted innovation (via Pango/Aura) meets US-scale operations, shaping standards for consumer-grade protection amid AI threats and global privacy laws.[1]
AnchorFree's VPN legacy, now embedded in Aura's platform, positions it for expansion in AI-enhanced cybersecurity as threats evolve with IoT and 5G proliferation. Trends like zero-trust models and stricter data regs (e.g., GDPR expansions) will drive demand, potentially evolving its influence through Aura's global millions-user base toward proactive threat prediction. With $358M funding as a foundation, expect deeper enterprise plays and freemium innovations, cementing its role from privacy pioneer to integral safety layer—echoing its origin as the go-to shield in an unsecured web.[1]
