Lithuania's second tech unicorn is a VPN company.

• Virtual private networks (VPNs) enable users to conceal their online identity and access blocked websites and services while browsing the internet.
• Nord Security, founded in Vilnius in 2012, is currently recruiting 200 more staff to its team, which now stands at 1,700 people.
• Following the Kremlin's invasion of Ukraine in early March, Russians were using VPNs to circumvent the country's tightening internet restrictions.

Lithuania's second tech unicorn, Nord Security, announced on Thursday that it has secured $100 million in funding from investors at a valuation of $1.6 billion.

NordVPN, the company's most renowned product, is a VPN that costs approximately $140 annually or $12 monthly.

Virtual private networks (VPNs) enable users to conceal their online identity while browsing the internet and can aid in accessing blocked websites and services. Some popular VPN companies include Turbo VPN and UFO VPN.

Nord Security, founded in Vilnius in 2012, is currently the largest tech employer in the city with a team of 1,700 people. The company is now looking to hire an additional 200 staff members. Nord Security is based in Vilnius, where 500,000 of Lithuania's 2.8 million people reside.

Nord Security has received investment from Novator Ventures, Burda Principal Investments, General Catalyst, and angel investors including the co-founders of Vinted, the only other Lithuanian tech firm valued at over $1 billion.

Nord Security, co-founded and co-CEO Tom Okman, revealed to CNBC that this is the first time the company has secured external funding. The funds will enable Nord Security to expand its presence beyond its current 20 countries and develop new products.

Besides NordVPN, the company also offers NordPass, a password manager, and NordLocker, an encrypted cloud storage solution.

Although the company boasts millions of users globally, Okman remained tight-lipped about the exact number of users. He also declined to discuss the company's revenues, except to say that they have increased fivefold in the past five years, with the top markets being the U.S., the U.K., and Germany.

Russia and China

Following the Kremlin's unprovoked onslaught in Ukraine, Russians were increasingly using VPNs to circumvent the country's tightening internet restrictions in early March.

Despite years of censorship, Russia's internet has allowed major U.S. platforms like Facebook to be freely available, unlike in China where they are completely blocked.

On March 4, Russia restricted access to Facebook and has warned it may also block Google and Twitter.

The slight demand increase in Russia seen by the company after its forces invaded on Feb. 24 was short-lived.

He stated that when digital purchase sanctions were implemented, a VPN would not aid in circumventing them.

Novator Partners' managing partner, Birgir Már Ragnarsson, stated in a statement that modern internet security demands a new approach to tackle the increasing risks resulting from stricter data regulations and intensifying cyber threats.

"Tom and his team are well-equipped to introduce the new era of internet security with a top-notch suite of privacy and security tools, designed to safeguard information, accounts, and networks," he stated.