Netskope Joins Rare Cybersecurity IPO Wave After Rubrik, Backed by Lightspeed Venture Partners
The cybersecurity sector is gearing up for another rare Wall Street debut as Netskope, a cloud security platform, prepares to go public next week. The move follows closely behind Rubrik’s IPO in 2024 and positions Netskope among a small group of cybersecurity firms opting for the public markets instead of acquisitions, a common exit route in the industry. Netskope’s IPO underscores growing investor appetite for security solutions, even as rivals like Wiz chose acquisition paths—Google bought Wiz earlier this year instead of seeing it through to the stock market.
Founded in 2012, Netskope specializes in Secure Access Service Edge (SASE) solutions, offering enterprises cloud-based cybersecurity products such as secure web gateways and firewall-as-a-service. The company competes with industry giants like Palo Alto Networks and Zscaler, positioning itself as a challenger brand in one of the fastest-growing segments of cybersecurity. Despite rapid revenue growth, Netskope remains unprofitable, with $328.5 million in revenue and a $169.5 million net loss in the first half of 2025.
The IPO, expected to price between $15 and $17 per share, could give the company a valuation of up to $6.5 billion—below its last private valuation of $7.5 billion during the peak of the venture funding boom in 2021. Netskope raised $300 million in that round, led by ICONIQ Growth, and later secured a $401 million convertible note in 2023. Like other tech startups going public below their peak valuations, Netskope is adjusting expectations to match today’s market realities.
One of the biggest winners from Netskope’s debut will be its early investor, Lightspeed Venture Partners. The Silicon Valley venture firm, which also backed Rubrik, owns 19.3% of Netskope. At the top end of the IPO range, Lightspeed’s stake would be worth around $1.1 billion. ICONIQ Growth, Netskope’s second-largest shareholder, holds another 19.2%, while Accel owns nearly 9%. Lightspeed’s success with both Rubrik and Netskope highlights the firm’s deep influence in shaping Silicon Valley’s cybersecurity landscape.
If successful, Netskope’s listing could encourage more cybersecurity startups to consider IPOs, breaking a trend where high-growth companies opt for acquisitions instead of public markets. While valuations remain conservative compared to the zero-interest rate era, investor enthusiasm for cybersecurity remains strong. With Rubrik, Netskope, and potentially others testing the waters, Wall Street may be witnessing the start of a cautious but meaningful comeback for cybersecurity IPOs.
Source: Techcrunch