AnchorFree
| Company type | Private |
|---|---|
| Industry | Internet privacy and security |
| Founded | 2005 |
| Founder | David Gorodyansky, Eugene Malobrodsky |
| Headquarters | Redwood City, California , United States |
Area served | Worldwide |
Key people | Baglan Rhymes, Michael Geer |
| Products | Hotspot Shield (VPN service) |
| Website | www |
AnchorFree is a company specializing in internet privacy and security solutions, delivering cutting-edge technologies designed to ensure safe and confidential web browsing for both corporate clients and individual users. Its premier offering, Hotspot Shield, stands out as a top-tier virtual private network (VPN) service and ranks as the highest-earning productivity application on the Apple App Store. Established in 2005 by David Gorodyansky and Eugene Malobrodsky, the company is based in Redwood City, California and maintains additional offices in Ukraine and Russia. In its most recent financing round in 2018, AnchorFree secured $295 million, bringing total capital raised to $358 million.
Platforms and users
AnchorFree follows a freemium strategy, providing a no-cost version with fundamental features alongside a premium subscription that includes advanced options such as virtual server selections, enhanced connection speeds, unlimited data usage, and round-the-clock live customer support. The underlying software operates on the proprietary Hydra protocol.
Its applications are accessible on key platforms like Microsoft Windows, Mac OS X, Android, and iOS, collectively amassing over 650 million downloads. Furthermore, AnchorFree’s technology is embedded within products from 60% of the world’s foremost security and telecom providers.
Hotspot Shield has proven essential in regions facing internet censorship by granting secure access to blocked websites. For instance, during the 2010 Arab Spring, the number of Egyptian users escalated dramatically from 100,000 to one million as activists leveraged the app to reach social media platforms such as Twitter for protest coordination. Similar utilization occurred in Tunisia and Libya throughout this period.
Under the guidance of executives Baglan Rhymes and Michael Geer, who spearheaded growth initiatives and revenue expansion, AnchorFree attracted $52 million from Goldman Sachs in 2012 after surpassing 60 million downloads. The user base has since grown substantially, spurred by increased concerns over online privacy following notable security breaches like the Equifax incident, KRACK vulnerability exposure, and the FCC's repeal of Net Neutrality protections.
In 2018, AnchorFree obtained an additional $295 million investment from WndrCo—a venture fund established by Ann Daly, Sujay Jaswa, and Jeffrey Katzenberg—to fuel its ongoing global growth and product innovation efforts.
Reviews and awards
In January 2019, TechRadar awarded Hotspot Shield a rating of 4 out of 5 stars, describing it as a “premium VPN tailored for users prioritizing speed,” with reviewer Mike Williams emphasizing its “turbo-charged performance” as a distinctive strength.
That same year, Fast Company positioned AnchorFree as the 13th most innovative company worldwide and ranked it first among security firms for innovation, reflecting its significant market impact and business momentum.
Security evaluation firm AV-TEST acknowledged AnchorFree’s technology as both the fastest and most secure available, affirming its leadership within the VPN sector.
The Appy Awards honored Hotspot Shield as the top Online Security/Privacy Application in 2013, further affirming its industry acclaim.
Forbes recognized AnchorFree as America’s sixth most promising company in 2013, highlighting its expanding market presence and growth potential. The company’s CEO also contributed thought leadership articles to Forbes, enhancing brand visibility.
Additionally, Business Insider included AnchorFree among the 15 most influential security startups of 2013, underscoring its pivotal role in advancing cybersecurity innovation.
Critical reception
In August 2017, the Center for Democracy and Technology lodged a formal complaint with the Federal Trade Commission, accusing Hotspot Shield Free VPN of engaging in undisclosed data sharing and traffic rerouting activities that might breach FTC rules. Researchers from Carnegie Mellon University, working alongside CDT, validated these allegations concerning data exchanges with advertising networks, prompting scrutiny over the transparency of the company's business practices.