Netskope is set to test a fragile IPO window for cybersecurity, arriving close on the heels of Rubrik and sharing the same lead backer: Lightspeed Venture Partners. In a market where security startups more often sell than float, the pairing marks a rare back-to-back outcome for a single venture firm and a notable vote of confidence in cloud-first defense platforms.
Why this listing matters for security
Public-market debuts in cybersecurity have been sparse despite the sector’s size and resilience. Many high-growth names have opted for acquisition instead of the roadshow; even Wiz, once a category rocket ship, chose to be bought by Google. The last wave of notable listings included SentinelOne in 2021 and Rubrik more recently, underscoring how selective the IPO window has been for security vendors.
Netskope’s entrance is also a referendum on Secure Access Service Edge (SASE), the architectural model Gartner popularized to merge networking and security in the cloud era. As enterprises accelerate remote work and SaaS adoption, analysts at Gartner and 451 Research have tracked persistent demand for SASE and adjacent offerings that protect web, cloud, and private apps without traditional perimeter appliances.
Lightspeed’s twin wins: Rubrik and Netskope
Lightspeed emerged as a cornerstone shareholder in both companies. It held 23.9% of Rubrik at its roughly $6.6 billion IPO and owns 19.3% of Netskope, according to the amended S-1. At Netskope’s indicated range of $15 to $17 per share, Lightspeed’s stake would be worth about $1.1 billion on paper at the top end.
The firm first backed Netskope in 2013, leading a $21 million Series B, and stayed active through multiple rounds. ICONIQ Growth is another major holder at 19.2%, with Accel near 9%. Concentrated ownership among seasoned growth investors should help with post-IPO stability but also sets up a meaningful lock-up release to watch once insider shares become eligible for sale.
Inside Netskope’s numbers and position
Netskope is best known for SASE capabilities such as secure web gateway and firewall delivered as a service, aimed at safeguarding traffic across cloud and remote environments. Its closest public comparables are Zscaler and Palo Alto Networks, both of which have leaned into cloud-delivered security and zero trust architectures.
Per the company’s filing, revenue for the first half of the year rose to $328.5 million from $251.3 million a year earlier, while net loss narrowed to $169.5 million from $206.7 million. The growth-improving-losses profile is key in today’s market, where investors are awarding premium multiples to security names showing durable expansion with a credible path to operating efficiency.
Netskope’s cap table also reflects the late-stage capital dynamics of the past few years. The company was valued at $7.5 billion in 2021 when ICONIQ Growth led a $300 million Series H, and it later issued a $401 million convertible note in 2023. Those financings provided fuel to expand platform breadth and global go-to-market, but they also set a high watermark for today’s public valuation test.
Valuation check and the IPO barometer
At a potential $6.5 billion valuation, Netskope would join the cohort of venture-backed companies listing below their last private marks—a not-uncommon outcome in this cycle. Other recent examples include firms like Chime and Hinge Health. Still, investor appetite is not uniformly cautious: some new listings, including Figma and Circle, have traded strongly out of the gate, suggesting a market that rewards clear category leadership and efficient growth.
For security specifically, public comps provide a favorable backdrop. Large buyers continue consolidating vendors to simplify operations, and cloud-delivered controls remain priority spend even as IT budgets tighten. The question for Netskope will be the blend of growth, gross margins, and sales efficiency it can sustain—and how closely it can track the best-in-class benchmarks set by cloud security leaders.
What to watch after the bell
Beyond first-day trading, watch retention metrics, upsell from initial SASE footholds, and momentum with large enterprise accounts where multi-year commitments drive durability. Any commentary on converting the convertible note, operating cash flow cadence, and international expansion will also be telling for medium-term profitability.
Rubrik’s post-IPO performance provides a nearby yardstick: investors have favored security names that can pair platform expansion with disciplined sales productivity. If Netskope hits those marks, Lightspeed’s back-to-back listings could be remembered as the moment the cybersecurity IPO market finally reopened—selectively, but decisively.