Netskope Follows Rubrik As A Rare Cybersecurity Ipo, Both Backed Lightspeed

Cybersecurity is simply a monolithic sector, but startups successful nan class are much apt to beryllium acquired than spell public. Even Wiz, which for a clip held nan title of nan fastest-growing startup, abandoned its IPO ambitions erstwhile it agreed to sell to Google earlier this year.

In nan past fewer years, location person been scant fewer important cybersecurity debuts specified arsenic SentinelOne successful 2021, and Rubrik past year.

Next week, nan assemblage is expected to adhd 1 much nationalist company: nan unreality cybersecurity level Netskope. The 13-year-old startup besides shares its earliest and largest investor pinch Rubrik: Lightspeed Venture Partners.

The ample Silicon Valley patient had a 23.9% ownership of Rubrik erstwhile it went nationalist astatine $6.6 cardinal past year. In nan lawsuit of Netskope, Lightspeed owns 19.3% of nan institution that intends to execute a valuation of arsenic overmuch arsenic $6.5 billion, according to nan updated S1 filing.

Lightspeed first backed Netskope successful 2013, starring nan company’s $21 cardinal Series B.

The institution group its IPO value betwixt $15 and $17 per share, and astatine nan precocious extremity of that range, it would beryllium weighted astatine $6.5 billion, giving Lightspeed an astir $1.1 cardinal windfall, successful position of nan worth of its stake.

The Netskope’s different awesome investors see ICONIQ Growth, which holds 19.2% of nan company’s stock, followed by Accel pinch a liking of astir 9%.

Netskope is known arsenic a Secure Access Service Edge (SASE) provider. It offers cybersecurity for an enterprise’s unreality infrastructure, pinch specified products arsenic unafraid web gateways and firewall arsenic a service. The company’s main competitors are Zscaler and Palo Alto Networks.

The institution was past weighted astatine $7.5 billion, erstwhile it raised a $300 cardinal Series H led by ICONIQ Growth successful 2021, nan tallness of nan ZIRP era. It besides took connected a $401 million convertible statement successful 2023.

But those superior infusions weren’t capable to get Netskope to profitability. For nan first half of nan year, Netskope’s gross grew to $328.5 cardinal from $251.3 cardinal a twelvemonth ago. During that time, its nett nonaccomplishment narrowed to $169.5 cardinal from $206.7 million, nan filing shows.

If Netskope goes nationalist astatine a valuation of $6.5 billion, nan institution would beryllium among a number of VC-backed companies that person precocious debuted below their last backstage marketplace valuation.

Other companies that went nationalist beneath their latest backstage valuations see Chime and Hinge Health. But not each caller listings are being met pinch caution. Some caller IPOs, for illustration Figma and Circle, person soared connected nan first time of trading.