Potential claims of a Netskope IPO have been whispered in hushed tones for a few years now. Since the CEO hinted at the possibility of going public in 2021, investors have had their eyes open for news, but it seems that we’ll have to wait some more time for official statements.
The software development company provides plenty of services for corporate networks, including threat protection for websites, cloud services, and applications. On top of that, it offers safe data storage and transition, along with risk analytics and VPN solutions.
Here’s everything you need to know about the Netskope IPO plans and the estimated dates.
Netskope In a Nutshell
Netskope is an American software development company that offers cybersecurity solutions and data protection. It’s a California-based company, with its head office being in Santa Clara.
The company provides a security cloud that promises companies secure transitions of sensitive data. It was founded in 2012 by current CEO Sanjay Beri, and it holds more than 120 patents for its exclusive software that supposedly offers the world’s largest security private cloud.
An Overview of Netskope Financial Info
Since Netskope is still a private company, there isn’t much information about its finances, income, etc. However, the company’s last announced valuation stood at $7.5 billion in 2021. Since then, it’s been raising significant funds, which means its valuation is probably a lot higher now.
The company raised a total of $1.4 billion through 12 funding rounds, with the latest funding valued at a whopping $401 million from a convertible note round led by Morgan Stanley Tactical Value.
If you’re not familiar with convertible notes, they're short-term loans that are returned to the investor in equity when the company goes public.
More often than not, convertible loans include an interest rate, and the number 401 seems to be popular for cybersecurity startups because Netskope isn’t the only company that received this funding. Arctic Wolf raised the same amount through convertible notes as well.
Before the $401 million that Netskope raised in January 2023, there have been multiple funding rounds. The two rounds with the most significant funds were in 2021 and 2020, with $300 million and $340 million raised, respectively through additional investment.
Before that, Netskope raised approximately $169 million of investment funds through Accelerate Global Security.
As a venture-backed company, Netskope has a total of 23 investors, including Geodesic Capital, Accel, New York Life Ventures, Social Capital, Base Partners, and Sapphire Ventures. The most recent ones are CPP Investments and Goldman Sachs Asset Management, and the list will probably get longer.
What Do We Know About Netskope IPO?
Netskope is yet to open its doors for public trading, and unfortunately, there’s still no official date for the company’s IPO. Back in 2021, Netskope’s CEO Sanjay Beri hinted at the possibility of an IPO, saying that the company just finished a 3-year journey of building the largest cloud network in the world.
He mentioned a growing interest in R&D and an intention to allocate new funds in the field. On top of that, he said that he’s hoping Netskope would be leading the global security market that’d be valued at $30 billion by 2024.
Before ending his statement, he said that going public is part of the executives’ plan for Netskope, but they’re not in a hurry because the company is currently earning sufficient profit and doesn’t need capital. He also mentioned that there likely won’t be more private rounds raised, which indicates that the company doesn’t need further funds before the IPO.
Netskope’s CEO released this info back in 2021, and since then, there have only been speculations about the Netskope IPO without an official date released.
How to Invest in Netskope
Currently, there are limited ways of investing in Netskope since the company hasn’t been made public yet. For the best chance of acquiring Netskope stock early on, sign up for Pre-IPO Allocation Updates.
Wait for the IPO
Some investors would prefer to wait for the IPO to buy Netskope stock. The reason is pretty simple: patience can pay.
If you decide to pre-place your stock purchase, you likely won’t have enough info about the company’s financials, which are only revealed when the IPO becomes real.
Although that’s not always the case, the initial prices are sometimes prone to overvaluation, and when the investors don’t have enough info about the company’s finances, income, potential growth, etc., most prefer to wait.
When Is Netskope IPO Expected to Become a Reality?
There aren’t any official statements by Netskope executives about a date for the IPO yet, so any estimated dates are mere speculations by investors monitoring the company’s financial status. Taking the company’s solid investor base and rising valuation into consideration, an IPO can happen in 2024–2026, but again, those are mere speculations.
Why Is a Potential Netskope IPO Attractive to Investors?
The data protection market has been steadily growing for a few years now due to the global direction of transitioning to cloud technologies. There’s no wonder investors have their eyes on the market, seeing as it has the potential to reach a value of nearly $63 billion by 2027.
It’s expected to keep increasing by a 15% margin for the next 3–4 years, so the growth prospects are attractive for any investor interested in the field.
In fact, Netskope isn’t the only cybersecurity company with potential IPO plans. Investors have been waiting for Lacework and Snyk to hit the market, too, seeing as their valuations are steadily rising. However, both companies have released no official dates yet, same as Netskope.
Cybereason was yet another awaited IPO, but the executives abandoned the IPO plans and started seeking a sale instead.
Meanwhile, Netskope’s competitor, Okta, announced an IPO when the company’s valuation reached $1.5 billion, and it’s been open for public trading since then. So, we’re hoping Netskope will go the same route and open its doors for public trading.
The Final Verdict: Netskope IPO
Netskope IPO isn’t a reality yet, so any estimated dates or share prices are either speculations or educated guesses. Since the CEO’s words about a possible public offering in 2021, there have been no further updates, so investors will have to wait before they can invest in the cybersecurity service provider.
Plenty of cybersecurity companies are in line for IPOs, but most of them still haven’t released official dates yet, including Lacework, Snyk, and Exabeam.
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