Summary List Placement
The coronavirus crisis has provided an unexpected boost to cybersecurity startups and experts say that there’s a pipeline of hot companies gearing up to go public as soon as next year.
Startups with significant VC funding have risen to challenge public companies’ market share in key areas during the pandemic, as remote workers have required new kinds of cybersecurity protection. For instance, Netskope — with $754 million in VC funding and a staff of nearly 1,000 — is taking on Symantec and Cisco by providing a cloud-based alternative to the traditional firewall cybersecurity model.
“The old cybersecurity vendors who provided appliances to lock down office and data center perimeters are no longer relevant,” said managing director of Sapphire Ventures, Jai Das. “There is a new breed of cloud native security companies that are solving these problems and growing very rapidly.”
He highlighted a handful of cybersecurity startups “getting to a size where they can be public companies,” and was echoed by an analyst from data firm PitchBook.
“A pipeline of companies is forming as a number of companies prepare to go public,” said PitchBook’s Brendan Burke of the cybersecurity boom.
While companies are growing because of the pandemic, they may still be hesitant to hit the public markets at a time of uncertainty: Burke believes that IPOs for DarkTrace and Exabeam — two successful cybersecurity startups expected to go public this year — have been delayed due to the COVID-19 crisis.
The ability to generate capital and continue growing means private cybersecurity companies can afford to wait for a healthier economy to go public, Pitchbook said in a Q2 wrap-up.
“Putting a team in place, getting the right investors takes time,” Burke said. If startups can do these things while increasing their value and waiting out the uncertain economy, there’s no reason to rush.
Here are 16 cybersecurity startups heading towards an IPO:
DarkTrace: Using machine learning to find new threats
CEO: Poppy Gustafsson
Location: Cambridge, United Kingdom
Total venture capital raised: $170 million
Valuation: $1.6 billion (PitchBook)
Investors: Vitruvian Partners, Samsung Venture Investment, Kohlberg Kravis Roberts, Ten Eleven Ventures, and Balderton Capital
What it does: DarkTrace develops a cyberthreat defense platform that detects and responds to previously unidentified threats, enabling businesses to protect their cloud, email, IoT, network, and industrial systems.
What PitchBook says: With a machine-learning approach to threat detection, DarkTrace faces “weak” competition from incumbents including Cisco and FireEye, PitchBook says, adding that Darktrace “is an IPO candidate that may have to delay its plans in the current economic environment.”
What DarkTrace says: The company would not comment on an IPO, saying only that “since Darktrace’s inception 7 years ago, we have made leaps and bounds in the advancement of cyber AI.”
Netskope: Protective cloud analytics
CEO: Sanjay Beri
Location: Santa Clara, California
Total venture capital raised: $740 million
Valuation: $3 billion (Netskope)
Investors: Sequoia Capital, Dell Technologies Capital, Base Partners, Lightspeed Venture Partners
What it does: Netskope develops a cloud analytics platform that eliminates blind spots, guards data and stops elusive attacks, all enabling businesses to protect sensitive data and ensure compliance in real-time.
What PitchBook …read more
Source:: Businessinsider – Tech