Cloud security startup Netskope files for IPO at over $5B Valuation

Cloud security startup Netskope is heading to Wall Street. The Santa Clara-based startup filed paperwork on Friday to go public on the Nasdaq under the ticker symbol “NTSK,” marking one of the most closely watched cybersecurity debuts of the year.

Founded in 2012 by Sanjay Beri, Netskope carved out its place in the early days of the cloud access security broker market and has since grown into a full-scale security platform. According to CNBC, the company reported annual recurring revenue of $707 million, up 33% year-over-year, while first-half revenue rose 31% to $328 million. Still, profitability remains out of reach: Netskope posted a $170 million net loss in the first half, narrowing from $207 million in the same period a year earlier.

The IPO comes as the public markets reopen to tech companies after a long freeze brought on by high inflation and interest rates. Netskope joins a lineup of high-profile names making their public debuts this year, including Figma, Circle, CoreWeave, and eToro—all of which delivered strong first-day pops.

It also lands during a flurry of dealmaking in cybersecurity. Alphabet recently agreed to acquire Wiz for $32 billion, while Palo Alto Networks announced a $25 billion takeover of Israeli identity security company CyberArk. That context underscores the appetite for security companies at scale, even as valuations adjust from their 2021 peaks.

From $7.5B Peak to $5B IPO: Netskope Files to Go Public on Nasdaq

Netskope last raised primary equity financing in 2021 at a $7.5 billion valuation. A private secondary transaction in 2024 pegged its valuation closer to $5.12 billion, setting the stage for an IPO that analysts expect will value the company just above $5 billion. For backers such as Accel, Lightspeed, and Iconiq, the listing could deliver a payday similar to their recent windfall from Figma’s blockbuster debut.

Competition in the sector remains fierce. Netskope faces off against Palo Alto Networks, Cisco, Zscaler, Broadcom, and Fortinet. Its pitch has long been “unrivaled visibility and real-time protection” for data, apps, and web traffic across devices and locations, powered by technology it says can enforce context-aware governance across an enterprise.

Morgan Stanley and JPMorgan are leading the offering, with 13 other Wall Street banks listed as underwriters. Netskope’s debut will test whether investors are ready to bet on another unprofitable but fast-growing security company—one that sits at the center of how enterprises protect their data in the cloud.