Cloud cybersecurity platform Netskope is set to go public next week, marking a rare milestone in a sector where acquisitions typically supersede initial public offerings. With a target valuation of up to $6.5 billion, the 13-year-old company follows in the footsteps of Rubrik, signaling a potential thaw in the cybersecurity IPO market.
The Lightspeed Connection
Netskope shares a significant financial history with Rubrik, as both companies are heavily backed by Lightspeed Venture Partners. Lightspeed, which held a 23.9% stake in Rubrik during its $6.6 billion IPO last year, currently owns 19.3% of Netskope, according to the company’s updated S1 filing.
Lightspeed’s commitment to Netskope dates back to 2013, when it led the firm’s $21 million Series B round. With an IPO price range set between $15 and $17 per share, the high end of the valuation would result in an estimated $1.1 billion windfall for the venture capital firm. Other major institutional stakeholders include ICONIQ Growth, holding 19.2% of the stock, and Accel, with a nearly 9% stake.
Market Positioning and Competition
Operating as a Secure Access Service Edge (SASE) provider, Netskope delivers critical cloud infrastructure security, including secure web gateways and firewall-as-a-service solutions. The company currently competes directly with industry giants such as Zscaler and Palo Alto Networks.
Despite previous valuations reaching as high as $7.5 billion during its 2021 Series H round—led by ICONIQ Growth—Netskope is preparing to debut at a lower valuation. The company also secured $401 million in convertible notes in 2023 to bolster its capital position.
Financial Performance and IPO Outlook
Netskope’s path to the public markets reflects the broader challenges of high-growth cybersecurity firms struggling to reach profitability. While revenue for the first half of the year climbed to $328.5 million—up from $251.3 million in the same period last year—net losses remain significant. The filing indicates those losses narrowed to $169.5 million, down from $206.7 million previously.
Should the $6.5 billion valuation hold, Netskope will join a growing list of venture-backed firms that have gone public at figures lower than their final private market valuations, a trend observed recently with companies like Chime and Hinge Health. Market sentiment remains mixed, as investors weigh these cautious debuts against high-performing listings from players like Figma and Circle.