Final week’s mega deal of Google buying CNAPP supplier Wiz for $32 billion has some lamenting the way forward for IPOs within the cybersecurity house. Wiz was on a excessive progress trajectory, and provided that Wiz had beforehand rebuffed Google’s curiosity in the summertime of 2024, many assumed Wiz was on course for a 2025 IPO, the success of which was meant to function a bellwether for the general well being of the cybersecurity market. With Wiz now not an IPO candidate, has momentum for cybersecurity IPOs stalled?
Within the brief time period, the reply is sure, however that’s extra to do with the well being of the general tech IPO market, not simply cybersecurity. Genesys, a supplier of AI-driven name middle software program, just lately postponed its deliberate spring 2025 IPO, citing market uncertainty, with plans to revisit an IPO within the second half of 2025. And regardless of final yr’s uneven macroeconomic setting, there have been nonetheless over 220 IPOs within the US inventory markets final yr, up from 150 in 2023. Whereas roughly 10% of the 2024 IPOs had been of the SPAC (special-purpose acquisition firm) selection, there have been nonetheless a number of vital tech IPOs in 2024, together with Reddit, OneStream, Ingram Micro, and ServiceTitan, to call just a few. Rubrik’s April 2024 IPO additionally marked the primary cybersecurity-related IPO in two years.
Whereas the cybersecurity IPO market could also be muted proper now, there are nonetheless a number of attainable cybersecurity IPO candidates for 2025. Whereas there may be a whole lot of dialogue on tariffs and the present market volatility hindering IPOs, indexes such because the Cboe’s VIX Index (which analyzes S&P 500 index choices to derive a forward-looking projection of volatility) haven’t moved as a lot as the general market indices. Some have instructed that it’s because a lot of present volatility is derived from coverage choices (like tariffs), that means they are often shortly reversed and are additionally not tied as on to structural financial components.
Regardless of this present uncertainty, the resilience of the US inventory market, and the truth that there are nonetheless a number of cybersecurity corporations looking for a liquidity occasion, imply that cybersecurity IPOs might nonetheless occur in 2025, particularly within the second half of the yr. The present tech IPO bellwether is AI darling CoreWeave. Regardless of a tepid preliminary buying and selling day, CoreWeave has since rebounded and its shares are up.
This present (however not at all complete) listing of potential cybersecurity IPO candidates for the autumn of 2025 might be put into two distinct classes:
Class one: venture-backed, with $500 million or extra in VC funding and excessive annual recurring income (ARR) progress of over 40%
- Netskope: In October 2024, Netskope CEO Sanjay Beri indicated plans to proceed with an IPO within the second half of 2025, relying on market circumstances and investor urge for food. Netskope has raised over $1 billion in enterprise capital, reported over $500 million in ARR, and competes within the excessive demand Zero Belief edge community safety section. Whereas Netskope has not filed an S-1 kind with the SEC but, it’s a vendor to observe in 2025 as a robust contender for an IPO.
- Snyk: Like Netskope, utility safety developer Snyk has raised over $1 billion in enterprise capital, hit $300 million in ARR final yr, and is rising ARR 40% yearly. Whereas Snyk has not filed an S-1 with the SEC, it’s lengthy rumored to be an IPO candidate and suits the factors for this class. Utility safety stays a excessive progress space.
- OneTrust: This privateness administration firm has raised over $1 billion and is exceeding $500 million in ARR. Whereas the agency has been mum on any IPO plans, it meets the scale, valuation, and progress metrics for an IPO.
- Armis has not reached the $500 million ARR milestone but however is rising quickly and has raised over $800 million in enterprise capital. Based on Bloomberg, it’s taking a look at 2026 for an IPO, so continued success and progress in 2025 will place the corporate for an IPO subsequent yr.
Class two: established cybersecurity agency owned by non-public fairness (PE) companies for 2 or extra years and looking for exit
This class already has a profitable 2025 IPO: identification administration and governance vendor SailPoint, which PE investor Thoma Bravo took public in February, elevating $1.4 billion within the IPO at a $12 billion valuation. Another IPO candidates on this class embody:
- Proofpoint: Electronic mail and information safety vendor Proofpoint was taken non-public by Thoma Bravo for $12 billion in 2021. Final fall, Proofpoint indicated plans to return to public markets inside 12 to 18 months. Thoma Bravo has held Proofpoint for 5 years; this might be a very good IPO candidate as soon as market circumstances enhance.
- Illumio: Additionally owned by Thoma Bravo since 2021, Illumio has raised greater than $500 million in funding, is rising quick, and had a $2 billion-plus valuation when acquired by Thoma Bravo. Illumio was a Chief in The Forrester Wave™: Microsegmentation Options, Q3 2024, final yr and competes within the high-demand cloud safety and Zero Belief segments.
- Delinea: Final week, the PE proprietor of privileged identification administration vendor Delinea indicated that it’s contemplating IPO plans. TPG has owned Delinea since 2021 when it merged Thycotic and Centrify and renamed the brand new entity Delinea. With Delinea’s ARR at nearly $400 million, it suits the factors, particularly if the PE proprietor is seeking to exit this funding in 2025.
Whereas macroeconomic components or geopolitical occasions might have an effect on the general public market’s urge for food for tech IPOs, this publish has hopefully proven that there are many well-funded and capitalized cybersecurity corporations able to going public within the subsequent 12 months based mostly on market circumstances. And seeing as all these corporations are rising and investing of their product choices, safety professionals ought to view pending cybersecurity IPOs as a optimistic validation of the general cybersecurity market and their provider’s place inside that market.
