Cybersecurity startup Netskope raises $908M in U.S. IPO at $7.3B valuation, pops 20% on Nasdaq debut

Netskope stormed into the public markets on Wednesday, pulling off one of the year’s biggest IPOs in tech. The Santa Clara–based cybersecurity startup raised $908.2 million in its U.S. debut, pricing shares at $19 each—at the top of its range—and valuing the company at $7.3 billion, according to a report from CNBC. The stock immediately found momentum on the Nasdaq, opening at $23 and climbing more than 20% in early trading.

Founded in 2012, Netskope has built its business around protecting apps, websites, and corporate data from cyber threats. With enterprises shifting workloads to the cloud and racing to integrate AI tools, the company positions itself at the intersection of two of the strongest demand curves in tech.

“The world is moving to AI and cloud,” CEO and co-founder Sanjay Beri told CNBC ahead of the listing. “That requires a redefinition of the biggest market in security, data network security. That’s what we are.”

The public debut comes after a stretch of volatility that kept many tech firms on the sidelines. Last year, inflation worries, higher interest rates, and tariff uncertainty under President Donald Trump froze the IPO window for months. Momentum started to return this year, with strong openings from Klarna, StubHub, Figma, and Circle helping to reignite appetite for new offerings. Netskope’s IPO adds fresh weight to the comeback narrative, with investors more than twenty times oversubscribing to the deal.

From Losses to Nasdaq Debut: Netskope’s $7.3B IPO Shows Investors Are Betting on Growth

Netskope’s financials reflect a company still operating at a loss but growing quickly. Revenue reached $328 million in the six months ending July 31, up from $251 million a year earlier. Net loss narrowed to $170 million from $207 million in the same period. The company reported annual recurring revenue above $700 million and expects to generate positive free cash flow this year.

The IPO also underscores the shifting ground in cybersecurity. Big-ticket deals like Google’s purchase of Wiz and Palo Alto Networks’ $25 billion agreement to buy CyberArk have signaled a new wave of consolidation. Netskope, though, has carved out a different approach, targeting specific technologies and teams instead of large-scale acquisitions. “I’m not a believer that in security and networking, people want one platform,” Beri said. “People need to play well with each other in the industry and integrate for the best of the customer.”

Competition remains fierce, with Palo Alto Networks, Broadcom, and Cisco listed as direct rivals. Still, Netskope’s surge onto the Nasdaq suggests investors see room for another big player. For a market long hungry for tech IPOs, the debut offers both a test and a reminder: investor appetite for growth is alive and well.