Netskope follows Rubrik as a rare cybersecurity IPO, both backed by Lightspeed
Cybersecurity startups rarely take the IPO path, but Netskope follows Rubrik as a rare cybersecurity IPO, both backed by Lightspeed. The cloud security firm is set to go public next week, marking another milestone for Lightspeed Venture Partners after Rubrik’s market debut last year.
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While the cybersecurity market is booming, most startups in the sector opt for acquisitions. Even Wiz, once the fastest-growing security startup, sold to Google instead of pursuing an IPO. That’s why Netskope’s decision to list is drawing so much attention.
Lightspeed’s Double Bet on Cybersecurity IPOs
Lightspeed Venture Partners has now backed two rare cybersecurity IPOs in consecutive years. The firm owned nearly 24% of Rubrik when it went public at a $6.6 billion valuation in 2024. For Netskope, Lightspeed holds a 19.3% stake, with an expected valuation of up to $6.5 billion, according to its updated S-1 filing.
First investing in Netskope back in 2013 during its $21 million Series B, Lightspeed is poised for another billion-dollar windfall if the IPO performs at the high end of its pricing range.
Netskope’s IPO Details
Netskope has priced its shares between $15 and $17, aiming to raise significant capital in the public markets. At the top of that range, Lightspeed’s stake would be worth about $1.1 billion.
Other major investors include ICONIQ Growth, holding 19.2% of shares, and Accel, with nearly 9%. The deal could signal a resurgence of public offerings for cybersecurity firms, even in a market where IPOs remain scarce.
What Netskope Brings to the Table
Netskope is a leader in Secure Access Service Edge (SASE), providing cloud security solutions such as secure web gateways and firewall-as-a-service. Its offerings compete with industry giants like Zscaler and Palo Alto Networks.
The company was last valued at $7.5 billion in 2021 during a $300 million Series H led by ICONIQ Growth. It later raised $401 million through a convertible note in 2023, reflecting strong investor confidence in its long-term growth.
Why This IPO Matters
With Netskope following Rubrik as a rare cybersecurity IPO, both backed by Lightspeed, the spotlight is on whether cloud security companies can thrive as public entities. The IPO not only underscores the growing importance of cloud protection but also highlights Lightspeed’s sharp eye for category-defining startups.
If Netskope succeeds on Wall Street, it could inspire other late-stage cybersecurity companies to revisit their IPO ambitions, potentially breaking the trend of acquisitions dominating the industry.
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