The cybersecurity market has been on the rise for the past few years now. It’s expected to reach a record-breaking value of $262.4 billion by 2027, and eyes are out for potential IPOs in the sector.
Investors have been waiting for plenty of cybersecurity companies to announce IPOs, including Exabeam, Netskope, and Snyk. However, most of them still haven’t taken the leap into the public market, and they didn’t even announce official dates.
If you’ve been waiting for Exabeam IPO for some time now, you may want to learn about the company’s plan, valuation, etc. Here’s everything you need to know!
The story of Exabeam is an amusing one because even though it’s a cybersecurity company, it got founded because of a data theft incident.
When Nir Polak got his credit card data stolen, he didn’t pass it off as a casual annoyance like any of us would have. Instead, he was impressed that the card issuer flagged the abnormal behaviour, and he wondered whether the same feature could be utilised for the cybersecurity market.
In Polak’s opinion, monitoring the employees’ routine could make it easy to flag unusual behaviour, which would consequently make it easier to catch data theft incidents faster.
By early 2012, Exabeam was in motion. Polak teamed up first with Sylvain Gil, a former colleague, and then they met co-founder Domino Mihovilovic along the way.
They started developing their iron-clad cloud security system, and only one year after the company launched, it already had 50 paying customers. It’s been steadily rising since then.
Exabeam’s most popular product is a cloud security system that depends on entity behaviour analytics (UEBA).
The main idea is to monitor the users’ behaviour constantly. The tracking allows the system to catch anything unusual or red flags that may breach a corporate network’s cybersecurity.
Now, Exabeam is providing its services to major brands in different industries, including Levi’s and Safeway. As of 2023, more than 284 companies worldwide benefit from the company’s threat protection services.
Since its launching, Exabeam has had more than eight funding rounds, raising around $391 million in the process. The company was valued at $7.5 million for Series A, and it rose to a whopping valuation of $2.4 billion for Series F after a $200 million funding round in 2021.
The round was led by the Owl Rock division of Blue Owl Capital, and existing investors supported it.
Exabeam has 14 lead investors, some of which are Lightspeed Venture Partners, Acrew Capital, and Norwest Venture Partners.
Around the same time Exabeam raised the $200 million, the company hired a new CEO, Michael DeCesare, who previously served as McAfee’s president. According to his own words, DeCesare is a stage-two CEO whose primary responsibility is to expand the company’s security operations customer base in the market.
In a statement about Exabeam funding, Nir Polak said that the funding gives them the operating capital that they need to deliver their cloud platform, SecOps, and execute their vision to make it the number one trusted platform globally.
Polak also mentioned that the funds allow them to allocate more budget for R&D and continue engineering their cloud security products, including SIEM, XDR, and UEBA.
Unfortunately, there isn’t sufficient info about Exobeam IPO. All we know is that it’s still pending, and there’s no official release date yet.
At some point, it seemed that Exabeam’s executives were planning for an IPO and hoping for it. Hiring DeCesare as CEO further solidified that theory because he has IPO experience with ForeScout technologies. However, we can’t say the same now; it doesn’t seem like an IPO is on the horizon for Exabeam.
The company had no significant updates in the last couple of years, as far as we know. Since DeCesare hinted at an IPO potential and said that it wasn’t a top priority, there haven’t been any updates to prove otherwise.
It looks like Exabeam is looking to be an active strategic buyer before launching an IPO. Till now, the company only acquired SkyFormation in 2019, but the funding rounds and the amounts raised suggest future acquisitions.
Currently, there are limited ways to invest in Exabeam since it’s not open for public trading yet. Unless you’re an accredited investor, you’ll have to wait in line until the company announces an IPO.
Exobeam isn’t the only awaited IPO in the cybersecurity market. In fact, the market is full of companies with full potential for IPOs, but without any official announcements to get investors excited.
In 2022, the cybersecurity sector had more than $18 billion of venture capital funding, and more than 95 companies managed to raise more than $50 million.
The total amount raised in 2022 is around a 50% increase from 2020. In 2021, the sector saw record-breaking funds of $30.4 billion.
All these numbers tell you that the cybersecurity market is yet to reach its full potential and that investors are right to wait for IPOs.
Here are a few companies in line for an IPO, like Exabeam:
Lacework has been under the radar for a while now, but not entirely because of the potential IPO. The company raised $1.3 billion in 2021, which was followed by a 20% cut in the workforce.
Layouts are never good for businesses, and Lacework faced a lot of lash during the years that followed, but it’s still expected to recover.
Investors were waiting for a 2022 listing, but Lacework is yet to announce an IPO.
Netskop’s CEO hinted at the possibility of an IPO in 2021, mentioning that it’s the next major step for the company. However, there haven’t been any updates since then regarding the matter. The company was valued at $7.5 billion in 2021, making it one of the biggest cybersecurity companies in the market.
Investors are still hopeful for a Netskope IPO because its numbers have been good, and it’s expected to be one of the first IPOs in the cybersecurity market.
Since Exabeam’s CEO talked about going public a few years ago, there haven’t been any major updates to confirm that an IPO is within the company’s priorities. Investors are hopeful, but it looks like we’ll have to wait some more time before an IPO becomes real.
The company is currently focusing on advancing its security cloud platforms and products, and it’s reportedly allocating more funds for R&D.
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