The cybersecurity landscape witnesses a rare event as Netskope prepares for its public market debut, marking one of the few significant cybersecurity IPOs in recent years. This development follows Rubrik’s successful public offering, with both companies sharing Lightspeed Venture Partners as their primary investor.
Netskope Cybersecurity IPO Details and Valuation
Netskope aims for a valuation between $6.5 billion at the upper price range of $17 per share. The company set its IPO price between $15 and $17 per share. Consequently, this valuation represents a decrease from its last private valuation of $7.5 billion in 2021. However, the cybersecurity IPO still represents a significant milestone for the sector.
Lightspeed Venture Partners’ Strategic Role
Lightspeed Venture Partners maintains a 19.3% ownership stake in Netskope. The firm previously held 23.9% of Rubrik during its cybersecurity IPO last year. Additionally, Lightspeed first backed Netskope in 2013, leading the company’s $21 million Series B round. Therefore, the venture firm stands to gain approximately $1.1 billion from Netskope’s public offering.
Cybersecurity IPO Market Trends
The cybersecurity sector typically favors acquisitions over public offerings. Recently, Wiz abandoned IPO plans to sell to Google. Similarly, few significant cybersecurity debuts have occurred since SentinelOne’s 2021 offering. Nevertheless, Netskope’s cybersecurity IPO could signal changing market conditions.
Financial Performance and Growth Metrics
Netskope demonstrated strong revenue growth despite ongoing losses. First-half revenue reached $328.5 million, up from $251.3 million year-over-year. Meanwhile, net losses narrowed to $169.5 million from $206.7 million. The company operates in the competitive SASE market against established players like Zscaler and Palo Alto Networks.
Investor Landscape and Ownership Structure
Major investors include:
• ICONIQ Growth: 19.2% ownership
• Accel: Nearly 9% stake
• Lightspeed: 19.3% position
These investors supported Netskope through multiple funding rounds, including a $300 million Series H in 2021 and a $401 million convertible note in 2023.
Market Position and Competitive Landscape
Netskope operates as a Secure Access Service Edge (SASE) provider. The company offers cloud infrastructure cybersecurity solutions. Key products include secure web gateways and firewall-as-a-service offerings. Consequently, the cybersecurity IPO positions Netskope against larger, established competitors in the growing cloud security market.
FAQs
What is Netskope’s expected IPO valuation?
Netskope targets a valuation up to $6.5 billion at the $17 per share price point, though this represents a decrease from its last private valuation of $7.5 billion.
Who are Netskope’s major investors?
Lightspeed Venture Partners (19.3%), ICONIQ Growth (19.2%), and Accel (approximately 9%) are the company’s largest stakeholders.
How does Netskope’s cybersecurity IPO compare to Rubrik’s?
Both companies share Lightspeed as their primary investor and represent rare cybersecurity IPOs in a market dominated by acquisitions rather than public offerings.
What is Netskope’s business model?
Netskope provides cloud cybersecurity solutions through its Secure Access Service Edge (SASE) platform, including secure web gateways and firewall-as-a-service products.
When did Lightspeed first invest in Netskope?
Lightspeed first backed Netskope in 2013, leading the company’s $21 million Series B funding round.
How has Netskope’s financial performance been?
The company showed revenue growth to $328.5 million in the first half of the year, though it still operates at a net loss of $169.5 million during the same period.
