The cybersecurity industry continues to grow rapidly, yet startups in the space are still more often acquired than launched as public companies. With few exceptions in recent years, cybersecurity firms have largely avoided IPOs, opting instead for private sales or acquisitions. However, the Netskope IPO, a cloud cybersecurity provider, is preparing to go public next week, joining Rubrik as one of the sector’s rare IPO entrants.
Founded 13 years ago, the Netskope IPO shares its earliest and largest investor with Rubrik: Lightspeed Venture Partners. Lightspeed, a prominent Silicon Valley firm, held a 23.9% stake in Rubrik when it went public last year with a valuation of $6.6 billion. In the case of the Netskope IPO, Lightspeed currently owns 19.3% of the company, which aims for a valuation of up to $6.5 billion according to its updated IPO filing.
Lightspeed first backed Netskope in 2013, leading its $21 million Series B funding round. If shares in the Netskope IPO price at the top end of the $15 to $17 range proposed for the IPO, Lightspeed stands to gain approximately $1.1 billion in value from its stake alone.
Netskope’s Market Position and Offerings
The Netskope IPO highlights its position in the Secure Access Service Edge (SASE) space, offering cloud-based cybersecurity solutions designed for enterprises transitioning to hybrid and remote work environments. Its products include secure web gateways, cloud firewall services, and other tools that protect cloud infrastructure from evolving threats.
Netspoke’s primary competitors are well-established players like Zscaler and Palo Alto Networks, which have set high standards for cloud security services. Despite intense competition, the Netskope IPO has positioned the company as a key provider of cybersecurity solutions tailored to cloud-based environments, a segment that continues to expand as more organizations rely on distributed networks.
Financial Performance and Challenges
While the Netskope IPO has been successful in attracting investment, achieving profitability remains a challenge. In the first half of 2025, the company reported revenue growth from $251.3 million to $328.5 million compared to the previous year—a strong increase reflecting continued demand for cloud security solutions. However, it also recorded a net loss of $169.5 million, albeit an improvement from a $206.7 million loss the prior year.
The company’s last private valuation was $7.5 billion during its Series H round in 2021, led by ICONIQ Growth. It also raised $401 million through a convertible note in 2023. Yet despite these capital injections, the Netskope IPO underscores the broader challenge of scaling cloud security operations while managing increasing infrastructure and development costs.
Investor Outlook and Broader Industry Trends
If the Netskope IPO valuation reaches $6.5 billion, it would reflect a trend seen in other recent offerings where companies have gone public at valuations below their final private funding rounds. This includes firms like Chime and Hinge Health, which have also seen cautious investor sentiment.
Nevertheless, cybersecurity remains a critical sector for investors and business leaders alike. With threats becoming more sophisticated and enterprises accelerating digital transformation efforts, demand for robust cloud security services is unlikely to slow.
The upcoming Netskope IPO could serve as an important barometer for investor appetite in cybersecurity. For entrepreneurs and business owners, it underscores both the opportunities and challenges of building scalable cybersecurity solutions in a competitive environment. As more organizations shift to cloud-first strategies, companies like Netskope are expected to play a pivotal role in securing enterprise networks, albeit while navigating profitability pressures and market expectations.
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