Microsoft (MSFT:NASDAQ)-backed cybersecurity firm Rubrik (RBRK:NYSE) plans to raise up to $750 million as it becomes the latest company to unveil plans for an IPO (initial public offering) in the US.  

The roster of companies planning to go public is starting to fill out after two years of relative drought following recent successes by social media platform Reddit (RDDT:NYSE) and semiconductor connectivity company Astera Labs (ALAB:NASDAQ), which met or exceeded their IPO fundraising goals and then rose on their trading debuts.

Reddit and Astera helped push the total funding raised via IPOs on US exchanges to $9.6 billion during the first quarter of 2024, according to data compiled by Bloomberg.

Digital marketing software firm Ibotta and UK-based commodities dealer Marex are among other companies which have filed for IPOs, while firms believed to be mulling IPOs this year include payment businesses such as Stripe, Klarna and Checkout.com and UK digital bank Starling.

Rubrik, a cloud computing and data security start-up, was founded in 2013 and released its first product in 2016. It now claims more than 6,100 customers, including governments and universities. Leading corporate clients include banks Barclays (BARC), Goldman Sachs (GS:NYSE) and Citigroup (C:NYSE), consumer products providers like Home Depot (HD:NYSE) and PepsiCo (PEP:NASDAQ), biotech firm Illumina (ILMN:NASDAQ), fintech Fiserv (FI:NYSE) plus the Denver Broncos American Football organisation.

In a letter to investors included in the prospectus, Rubrik chief executive and chairman Bipul Sinha said no government or business was immune to cyberattacks. ‘While our company has grown in organisational size and experience, our mindset, sense of urgency, and risk posture remain as if we were still in the same tiny room as on day one’, Sinha said.

Microsoft made an equity investment in Rubrik in 2021 in a financing round which valued the startup at $4 billion, according to Bloomberg, and to date the company is estimated to have raised around $1.8 billion from early investors based on data from Pitchbook.

The company’s subscription annual recurring revenue grew 47% in the year to 31 January 2024 according to the filing documents, but the figures also show a substantial increase in losses as the company invests to grow. The Palo Alto-based business reported net losses of $354 million on revenue of $628 million for the fiscal year versus $278 million on revenue of about $600 million a year earlier, according to the filing.

Other significant backers of Rubrik include venture capital firms Bain Capital, Lightspeed Venture Partners, Greylock Partners and Khosla Ventures. 

‹ Previous2024-04-11Next ›