Netskope Prepares for IPO Amid Limited Cybersecurity Public Listings
The cybersecurity sector, despite its rapid growth and strategic importance, has seldom seen startups transition to public markets, with many opting for acquisition instead. Notably, Wiz, once celebrated as the fastest-growing startup, abandoned its IPO plans following a buyout by Google earlier this year.
After a sparse number of significant cybersecurity IPOs in recent years—including SentinelOne in 2021 and Rubrik in 2024—Netskope is poised to become the next public entrant. The 13-year-old cloud security firm shares a critical connection with Rubrik: both count Lightspeed Venture Partners as their earliest and largest investor.
Lightspeed’s Strategic Investment and Ownership Stakes
Lightspeed held a 23.9% stake in Rubrik at its $6.6 billion public offering last year. For Netskope, Lightspeed owns 19.3%, positioning the firm for a potential $1.1 billion return if the IPO pricing reaches the upper $17 per share estimate. Lightspeed’s involvement dates back to 2013 when it led Netskope’s $21 million Series B funding round.
Other significant investors in Netskope include ICONIQ Growth, holding 19.2%, and Accel with nearly 9% ownership.
Netskope’s Market Position and Financial Performance
Netskope specializes in Secure Access Service Edge (SASE) solutions, providing cloud infrastructure security through products like secure web gateways and firewall-as-a-service. Its primary competitors include Zscaler and Palo Alto Networks.
The company’s last private valuation stood at $7.5 billion following a $300 million Series H round in 2021, led by ICONIQ Growth. Additionally, it raised $401 million via a convertible note in 2023. Despite these capital infusions, Netskope has yet to achieve profitability. Its revenue increased from $251.3 million to $328.5 million in the first half of 2025, while its net loss narrowed from $206.7 million to $169.5 million over the same period.
IPO Pricing Reflects Market Realities
Netskope’s anticipated valuation of $6.5 billion suggests the company may go public below its most recent private market valuation, a trend seen with other recent IPOs such as Chime and Hinge Health. Conversely, some tech IPOs like Figma and Circle have experienced strong first-day trading gains, indicating a mixed reception for new listings.
FinOracleAI — Market View
Netskope’s IPO is likely to have a neutral to slightly negative short-term market impact given its pricing below the last private valuation and ongoing unprofitability. While revenue growth and narrowing losses are positive indicators, investors may remain cautious amid broader tech market volatility and the cybersecurity sector’s historical tendency toward acquisition rather than public offerings. Key factors to monitor include Netskope’s post-IPO revenue trajectory, profitability milestones, and competitive positioning against established players like Zscaler and Palo Alto Networks.
Impact: neutral
