Netskope Upcoming IPO: Looking to secure a public debut in 2025

While the past few years have been relatively muted for IPOs, 2025 could see positive change, with several prominent companies hoping to take advantage of more favorable conditions next year. One of these venture-backed companies is Netskope, which is hoping to go public in the second half of 2025, as the Wall Street Journal reported.³

However, the decision of when to go public depends on investor appetite and market conditions. If these still look positive in 2025, then Netskope plans to move forward with an IPO, as founder and Chief Executive Officer Sanjay Beri told the Wall Street Journal. As of now, the company has not engaged an investment bank as an underwriter but has existing relationships that would enable the company to do so when the time comes.⁴

These reported plans are an encouraging sign, considering that just a few months ago, in June 2024, Beri told Reuters that although Netskope had been making plans to go public, the company was in no rush to do so.⁵

Netskope: Company background

Netskope is a cybersecurity company specializing in cloud security, and its Security Service Edge (SSE) solutions enable large enterprises to implement a Secure Access Service Edge (SASE). This more advanced form of security is critical for companies with large cloud workloads and distributed workforces.

Netskope started in 2012, co-founded by Sanjay Beri, Krishna Narayanaswamy, Ravi Ithal, and Lebin Cheng. These co-founders came from other well-known cybersecurity and IT companies, including Juniper Networks, Palo Alto Networks, and VMware. Beri still serves as Chief Executive Officer and Narayanaswamy serves as Chief Technology Officer.⁶

Securing modern enterprises

As the world becomes increasingly digital and businesses shift more workloads to the cloud, cybersecurity risks also elevate, as bad actors gain more pathways into corporate networks and can intercept data moving across the web.

Companies, especially large enterprises with complex cloud infrastructure and distributed workforces, need security solutions like Netskope, an SSE and SASE provider, that is designed to handle the way businesses operate nowadays. Unlike some traditional cybersecurity solutions that are more focused on scanning for vulnerabilities and attacks within a particular device or network, Netskope works to secure networks and data across both internal and external environments, including public and private cloud infrastructure.

One of Netskope's key features is its Zero Trust Engine, which essentially works by assuming any device or user is a potential threat and engages in continual verification, rather than giving unrestricted access to previously approved devices or users.

Netskope's approach and technology has led to financial success. In particular, Reuters reported in June 2024 that the company had crossed the $500 million mark in annual recurring revenue from subscriptions. In addition, Netskope’s subscription revenue, an important metric for software companies, had annually at a higher rate than the Gartner-estimated industry average of 29%.⁷

Netskope stock price history

Netskope's Forge Price is $10.28 as of November 2024.⁸ Forge Price is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.

Netskope's current stock price is about half of what it was at the time of its Series H in 2021, which valued the company at $7.5 billion and a $20.45 share price.⁹

However, so far in 2024, Netskope has just about kept pace with the Forge Private Market Index — a broad measurement that reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies that are actively traded in the private market. Netskope has also outpaced the private market enterprise software sector average year to date.¹⁰

Netskope funding history and private market valuation

Netskope has raised over $1 billion in total, dating back to a $5.5 million Series A in 2012 that valued the company at $27.5 million.¹¹

Since then, some notable rounds have included a $35 million Series C in 2014 that brought Netskope's valuation to a little under $200 million, with investment from Accel, Lightspeed Venture Partners, and Social Capital. For its Series E in 2017, prominent tech investors such as Dell Technologies Capital and Geodesic Capital, among others, allocated $100 million at a post-money valuation of $534.77 million.¹²

In 2020, Netskope had its largest equity-based round in terms of funding amount, bringing in nearly $350 million for its Series G. This round valued the company at $2.81 billion and included major investors such as the Canada Pension Plan Investment Board and Sequoia Capital.¹³

Netskope's last primary equity-based funding round came in 2021, when it raised $300 million for its Series H at a post-money valuation of $7.5 billion.¹⁴

In 2023, Netskope also raised over $400 million in convertible notes, led by funds managed by Morgan Stanley Tactical Value.¹⁵

Looking ahead

Although Netskope has not set a very specific timeline for an IPO beyond targeting the second half of 2025, it does seem to be trending in the right direction, especially considering that IPO plans are often rumored, rather than talked about openly by the CEO.

Check back here or take a look at Forge’s upcoming IPO calendar to stay in the loop about a possible Netskope IPO and other pending public offerings.

If you’re interested in investing in private companies like Netskope before they go public, read more about pre-IPO investing or register on Forge Markets today to get started.