Cybersecurity startup Netskope is preparing to go public next week with a valuation target of up to $6.5 billion, marking one of the few major cybersecurity IPOs in recent years. The 13-year-old cloud security platform would join Rubrik as rare public debuts in a sector where acquisitions typically dominate exits, with both companies sharing the same lead investor.
Netskope is betting that public markets are ready for another cybersecurity play. The cloud security platform just updated its S-1 filing with IPO pricing between $15-17 per share, targeting a $6.5 billion valuation that would make it one of the year's most significant tech debuts.
The timing couldn't be more strategic. Cybersecurity remains a massive growth sector, but startups have increasingly favored acquisition exits over public offerings. Even Wiz, once the fastest-growing startup in the space, abandoned its IPO plans to sell to Google for $32 billion earlier this year.
Lightspeed Venture Partners stands to reap the biggest windfall from Netskope's public debut. The Silicon Valley firm, which first backed Netskope in 2013 with a $21 million Series B round, now holds a 19.3% stake worth approximately $1.1 billion at the target valuation. It's a familiar playbook for Lightspeed, which scored big with Rubrik's IPO last year, where it held 23.9% of the $6.6 billion company.
Netskope operates in the Secure Access Service Edge (SASE) market, providing cybersecurity for enterprise cloud infrastructure through products like secure web gateways and firewall-as-a-service. The company competes directly with public giants Zscaler and Palo Alto Networks, both of which have seen their valuations surge as enterprises accelerate cloud adoption.
The financials tell a growth story with persistent challenges. Revenue climbed 31% to $328.5 million in the first half of 2025, up from $251.3 million year-over-year, according to the updated filing. Net losses narrowed to $169.5 million from $206.7 million, showing progress toward profitability but still burning significant cash.
The proposed $6.5 billion valuation represents a notable step down from Netskope's peak private market value. ICONIQ Growth led a $300 million Series H in 2021 that valued the company at $7.5 billion, during the height of the zero-interest-rate environment. The company also raised $401 million in convertible debt in 2023 to extend its runway.
Netskope joins a growing list of venture-backed companies going public below their final private valuations. Recent examples include Chime, which went public earlier this year, and digital health company Hinge Health. However, not all recent IPOs have disappointed - Figma and cryptocurrency firm Circle both soared on their trading debuts.
For ICONIQ Growth, Netskope's second-largest investor with 19.2% ownership, the IPO provides a critical liquidity event after years of patient capital deployment. Accel rounds out the major investors with nearly 9% of the company.
The cybersecurity IPO drought makes Netskope's debut particularly significant for the broader venture ecosystem. SentinelOne went public in 2021, followed by Rubrik in 2024, leaving few other major cybersecurity platforms in the public markets pipeline. The scarcity has created pent-up demand among institutional investors seeking exposure to the high-growth security sector.
Market conditions remain challenging for IPOs, with investors scrutinizing path-to-profitability and unit economics more carefully than during the ZIRP era. Netskope's revenue growth of 31% and narrowing losses position it favorably compared to many recent debuts, though the company will need to demonstrate sustainable growth at scale.
The broader cybersecurity market continues expanding rapidly as enterprises face increasingly sophisticated threats and regulatory requirements. Gartner projects the global cybersecurity market will reach $267 billion by 2026, with cloud security representing one of the fastest-growing segments.
Netskope's IPO represents a crucial test for cybersecurity companies seeking public market validation in a challenging environment. With solid revenue growth, major enterprise customers, and backing from top-tier investors, the company is positioned to succeed where many others have opted for acquisition exits. The outcome will signal whether public markets are ready to reward profitable growth in the critical cybersecurity sector, potentially opening the floodgates for other security startups considering similar moves.
