Cybersecurity is an enormous sector, however startups within the class usually tend to be acquired than go public. Even Wiz, which for a time held the title of the fastest-growing startup, deserted its IPO ambitions when it agreed to promote to Google earlier this yr.

Up to now few years, there have been scant few vital cybersecurity debuts resembling SentinelOne in 2021, and Rubrik final yr.

Subsequent week, the sector is anticipated so as to add yet another public firm: the cloud cybersecurity platform Netskope. The 13-year-old startup additionally shares its earliest and largest investor with Rubrik: Lightspeed Enterprise Companions.

The massive Silicon Valley agency had a 23.9% possession of Rubrik when it went public at $6.6 billion final yr. Within the case of Netskope, Lightspeed owns 19.3% of the corporate that goals to attain a valuation of as a lot as $6.5 billion, in accordance with the up to date S1 submitting.

Lightspeed first backed Netskope in 2013, main the corporate’s $21 million Collection B.

The corporate set its IPO worth between $15 and $17 per share, and on the higher finish of that vary, it might be valued at $6.5 billion, giving Lightspeed an roughly $1.1 billion windfall, by way of the worth of its stake.

The Netskope’s different main traders embrace ICONIQ Development, which holds 19.2% of the corporate’s inventory, adopted by Accel with a stake of practically 9%.

Netskope is called a Safe Entry Service Edge (SASE) supplier. It gives cybersecurity for an enterprise’s cloud infrastructure, with such merchandise as safe net gateways and firewall as a service. The corporate’s major rivals are Zscaler and Palo Alto Networks.

The corporate was final valued at $7.5 billion, when it raised a $300 million Collection H led by ICONIQ Development in 2021, the peak of the ZIRP period. It additionally took on a $401 million convertible word in 2023.

However these capital infusions weren’t sufficient to get Netskope to profitability. For the primary half of the yr, Netskope’s income grew to $328.5 million from $251.3 million a yr in the past. Throughout that point, its internet loss narrowed to $169.5 million from $206.7 million, the submitting reveals.

If Netskope goes public at a valuation of $6.5 billion, the corporate can be amongst a lot of VC-backed firms which have lately debuted beneath their last personal market valuation.

Different firms that went public beneath their newest personal valuations embrace Chime and Hinge Well being. However not all new listings are being met with warning. Some current IPOs, like Figma and Circle, have soared on the primary day of buying and selling.