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March 11, 2021

Digital defender Snyk quadruples valuation, rumoured to eye IPO

By Ellen Daniel

Cybersecurity unicorn Snyk has quadrupled its valuation over the scope of one year with it’s new $300m Series E funding round pushing its estimated worth to $4.7bn. The startup’s growth has made some experts speculate about if this could be the final stage before Snyk goes public.

The self-proclaimed “cloud native application security leader” has been topping up its coffers at a breakneck speed over the past year. Starting in January 2021, it secured a $1bn valuation and a membership of the coveted unicorn club after netting $150m in a capital raise. A few months later it doubled its worth to $2.6bn on the back of a $200m funding round in September. The company has raised a total of $470m since it was founded in 2015.

The London-headquartered startup’s platform is set up to empower developers to build cloud native applications securely, helping ensure that the code, open source libraries, container infrastructure and infrastructure as code do not contain vulnerabilities.

The company attributed this success to the popularity of its cloud native application security platform. With the Covid-19 pandemic forcing many organisations to increase their investment in cloud-based products, as well as the shift to remote working bringing with it new security considerations, this is not surprising.

And Snyk is not stopping there, with the speculations circling that it has set its sights on going public in the next few years. Part of those speculations has to do with the number of late-stage investors joining the raise.

Accel and Tiger Global Management co-led the funding round with existing investors Addition, Boldstart Ventures, Canaan Partners, Coatue, GV Salesforce Ventures, Stripes and funds managed by BlackRock also taking part. They were joined by new investors Alkeon, Atlassian Ventures, Franklin Templeton, Geodesic Capital, Sands Capital Ventures and Temasek.

Another reason behind why this may be the last raise before Snyk floats is that the market for enterprise software companies have been hot lately, meaning the stock markets and investors would probably welcome a public listing with open arms.

“Our relentless focus on the experience of the 2.2 million developers building applications of all kinds securely with Snyk has resulted in our success to date, and we believe there is an exponential, generational opportunity still in front of us,” said Peter McKay, CEO of Snyk. “This latest investment allows us to accelerate our growth at every level – doubling down on our successful product led growth strategy, adding to our customer roster, recruiting talent to our team worldwide and expanding geographically.”

Read More: McAfee sheds $4bn enterprise arm to focus on gobbling up consumers.