Netskope prepares for a $6.5 billion IPO, joining rare cybersecurity debuts
The cybersecurity industry is one of the largest and fastest-growing sectors in tech, but for startups, the public markets have remained elusive. Most promising companies in the space are snapped up by strategic acquirers long before ringing the opening bell. Even Wiz, once the fastest-growing startup in the category, scrapped its IPO ambitions earlier this year when it agreed to be acquired by Google.
In recent years, only a handful of cybersecurity firms have taken the plunge into public markets — with SentinelOne going public in 2021 and Rubrik following suit last year. Next week, the sector is expected to add one more to the short list: Netskope, a 13-year-old cloud cybersecurity platform that specializes in Secure Access Service Edge (SASE) solutions.
A Rare Exit Path in Cybersecurity
Netskope’s IPO marks a notable moment not just for the company but also for its investors. The startup’s earliest and largest backer, Lightspeed Venture Partners, stands to see a significant windfall. The Silicon Valley firm owned nearly a quarter of Rubrik at the time of its $6.6 billion IPO, and it now holds a 19.3% stake in Netskope, according to the company’s updated S-1 filing.
If Netskope prices at the upper end of its proposed $15 to $17 per share range, it would command a valuation of $6.5 billion — translating to roughly $1.1 billion in value for Lightspeed. Other top shareholders include ICONIQ Growth (19.2%) and Accel (just under 9%).
Lightspeed first backed Netskope in 2013, leading the company’s $21 million Series B round, and has continued to support it through its growth journey.
Financial Picture
Netskope was last privately valued at $7.5 billion during its $300 million Series H in 2021, led by ICONIQ Growth at the height of the ZIRP-fueled funding era. It later raised a $401 million convertible note in 2023 to bolster its balance sheet.
Despite robust revenue growth, profitability remains out of reach. For the first half of this year, Netskope’s revenue rose to $328.5 million, up from $251.3 million in the same period a year ago. Losses, however, narrowed, with net loss coming in at $169.5 million, compared with $206.7 million previously.
If Netskope debuts at $6.5 billion, it will join a growing club of venture-backed companies — such as Chime and Hinge Health — that have gone public at valuations lower than their last private funding rounds.
Market Outlook
As a SASE provider, Netskope offers enterprises cloud-based security products such as secure web gateways and firewall-as-a-service. Its biggest rivals include Zscaler and Palo Alto Networks, both already public and competing for enterprise security budgets as cloud adoption continues to expand.
Public investors have shown mixed reactions to recent listings. While some companies like Figma and Circle surged on their opening day, others have struggled to maintain momentum. Netskope’s performance will be closely watched as a barometer for investor appetite in cybersecurity IPOs, a sector still dominated by acquisitions rather than Wall Street debuts.
If successful, Netskope could set the stage for more cybersecurity firms to test the waters of the public markets — breaking a trend that has long favored buyouts over IPOs.
