Microsoft-backed cybersecurity startup Rubrik targets up to $5.4 billion valuation in US IPO

Rubrik, a cybersecurity startup backed by Microsoft, revealed on Tuesday it is going public at a valuation of up to $5.44 billion in an initial public offering (IPO) in the United States. This move comes when the IPO market is experiencing a resurgence after a two-year slowdown.

Despite the growing prominence of artificial intelligence, the demand for cybersecurity solutions remains high as companies grapple with the constant threat of cyber attacks. Rubrik’s IPO announcement follows closely on the heels of Israeli cybersecurity startup Claroty’s announcement last week of its plans to go public in 2025 with a valuation of $3.5 billion.

Rubrik’s decision to enter the public market adds to the growing list of tech startups seizing the opportunity amid favorable equity markets. Recent successful IPOs, such as those of social media platform Reddit and chip firm Astera Labs, have encouraged others to follow suit. Walmart-backed digital marketing company Ibotta is also gearing up for its IPO later this week.

Rubrik aims to raise up to $713 million through the sale of 23 million shares priced between $28 and $31 each, Reuters reported. We first covered in 2019  after the startup doubled its valuation to over $3.3 billion following a Series E funding round of $261 million. Microsoft’s investment in 2021 further bolstered Rubrik’s value, bringing it to $4 billion. Notable investors in Rubrik include Greylock Partners and Lightspeed Venture Partners.

Founded in January 2014 by Bipul Sinha, Arvind Jain, Arvind Nithrakashyap, and Soham Mazumdar, Rubrik offers innovative solutions for live data access, recovery, and application development. By integrating enterprise data management with web-scale IT, Rubrik eliminates the need for complex backup software. Its platform allows for seamless data management and protection across cloud, edge, and on-premises environments. Organizations, large and small, rely on Rubrik’s Cloud Data Management software to streamline backup processes, expedite cloud adoption, and facilitate automation.

Headquartered in Palo Alto, California, Rubrik serves over 6,100 customers, including industry heavyweights such as Whirlpool, PepsiCo, and Goldman Sachs. As the use of artificial intelligence grows, so do the associated risks to data security. This trend underscores the importance for organizations to allocate resources towards bolstering their cybersecurity defenses.