Cybersecurity startup Netskope eyes $6.5B valuation in U.S. IPO

Netskope is pushing ahead with plans to go public, pushing its valuation to up to $6.5 billion as it prepares for a Nasdaq debut. The Santa Clara–based cloud security startup confirmed Monday that it will sell 47.8 million shares priced between $15 and $17, raising as much as $813 million, Reuters reported.

The move comes just weeks after reports surfaced that Netskope had filed confidential paperwork to list at around $5 billion. The higher target shows investors’ growing appetite for cybersecurity offerings as the IPO market regains momentum following a spring slowdown. U.S. listings slumped in April under the weight of tariff-driven volatility, but confidence has since returned with trade negotiations calming nerves and investor demand strengthening.

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. Its platform has found a market among companies racing to shore up defenses as attacks grow more sophisticated and workloads shift to the cloud. The company counts Qualcomm and Canadian bank BMO among its customers, placing it in direct competition with heavyweights like Palo Alto Networks and Zscaler.

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 market Netskope plays in—known as secure access service edge (SASE)—is projected by Gartner to swell from $7 billion in 2022 to $25 billion by 2027. That growth potential has put cybersecurity startups in the spotlight for investors, particularly those leaning into AI-driven approaches to detect and stop intrusions.

Back in 2021, Netskope was valued at $7.5 billion in a funding round led by ICONIQ, with Sequoia and Accel among its backers. Its IPO follows rival Rubrik’s successful New York debut last year, where shares have since more than doubled, Reuters reported.

StubHub is also testing investor appetite, launching a roadshow Monday for a U.S. offering that aims to raise up to $851 million, Reuters reported. The parallel moves suggest a thaw in the listings market after months of hesitation.

Morgan Stanley and J.P. Morgan are leading the Netskope deal, with the stock set to trade under the ticker symbol “NTSK.” For investors, it’s the first chance to get a piece of one of the fastest-growing names in cloud security—at a price that signals both opportunity and risk in an industry defined by relentless threats.