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Netskope follows Rubrik as a rare cybersecurity IPO, both backed by Lightspeed
Netskope, a cybersecurity startup backed by Lightspeed Venture Partners, is set to go public, planning an IPO valuation of $6.5 billion amidst a trend where cybersecurity firms usually opt for acquisitions over public listings. This follows Rubrik's recent IPO and continues a rare wave of public offerings in the sector.
Key points
- Netskope is a 13-year-old cybersecurity firm specializing in Secure Access Service Edge (SASE).
- The company aims for an IPO valuation between $6 billion and $6.5 billion.
- Lightspeed Venture Partners holds a significant stake in both Netskope (19.3%) and Rubrik (23.9%).
- Netskope's IPO price is set between $15 and $17 per share.
- The firm reported revenue growth (H1 2023: $328.5 million from $251.3 million) but still faced a net loss of $169.5 million.
- The IPO comes at a time when other cybersecurity firms, such as Wiz and Hinge Health, have chosen to be acquired instead of going public.
Why it matters
- The trend of few cybersecurity IPOs reflects a broader phenomenon where startups in high-demand tech sectors opt for acquisition over public listings.
- The capital influx from investors like ICONIQ Growth and Accel highlights the competitive landscape in cybersecurity.
- Comparatively, other tech IPOs like Figma and Circle have performed well in the market, suggesting investor appetite remains strong for successful tech companies.
Netskope's upcoming IPO signifies a cautious yet positive shift in the cybersecurity sector, hinting at potential growth for public offerings as the market adapts to evolving investor sentiments.