Upcoming IPO: Cybersecurity company Rubrik set to continue IPO momentum
After a long freeze, the IPO market for late-stage venture-backed companies may be heating up. In late March 2024, both Astera Labs (NYSE: ALAB) and Reddit (NYSE: RDDT) launched IPOs with closing-day prices significantly higher than their initial offering prices.6 While both companies have retracted somewhat since then, the market environment appears more receptive to IPOs in 2024 than 2023, when the number of IPOs was 85% lower than the record level set in 2021.7
Cybersecurity software firm Rubrik appears to be next up on the tech IPO docket, with an expected potential debut as soon as early April. Palo Alto-based Rubrik makes cloud-based ransomware protection software and data backup software, serving more than 5,000 customers, including high-profile names such as Home Depot, Sephora, PepsiCo, and Aon.8 According to CNBC, Rubrik generates annual recurring revenue of over $600 million, and its sales are growing in high-single-percentage digits.9
The Fast-Growing Cybersecurity Industry
Rubrik’s expected public debut comes at a time of growth for companies that help organizations protect against cyberattacks. Worldwide end-user spending on security and risk management is projected to total $215 billion in 2024, an increase of 14.3% from 2023, according to a recent report from tech research and consulting firm Gartner.10 Spending on data privacy and cloud security is projected to record the highest growth rates in 2024, with each segment increasing more than 24% year-over-year. Cybercrime is expected to exceed $10 trillion by 2025 and $13 trillion annually by 2028,11 so the ongoing threat is likely to drive continued demand for cybersecurity services, such as those Rubrik provides, in the years ahead.
A Look at Rubrik’s Private Stock Price
Despite broader tailwinds for cybersecurity companies, Rubrik has generally trailed the performance of its publicly listed counterparts, a trend seen in the broader private market as well since January 2023. Rubrik’s performance is measured by Forge Price™, a derived price calculated based on a proprietary model incorporating pricing inputs from publicly available funding round information, secondary market transactions, and indications of interest on Forge Markets.
As of March 31, 2024, Rubrik’s Forge Price was $35.40, compared with a Forge Price of $31.50 as of January 1, 2023, representing a gain of 12% over that period. For the year-to-date (YTD) period through March 31, 2024, Rubrik’s Forge Price is down approximately -2%.12 Meanwhile, shares of the First Trust NASDAQ Cybersecurity ETF (CIBR) — a proxy for the industry — has gained more than 47% since January 1, 2023, and is up approximately 7.5% YTD through March 31, 2024.13 It’s worth noting that the private market — with pricing information that can be difficult to track in real time — tends to lag public markets on both the upside and downside.
Even so, the relative underperformance of Rubrik versus its public competitors should be viewed in context, as the Forge Private Market Index was down -17% for the period of January 1, 2023, to March 31, 2024.14 This means that Rubrik outperformed the overall Forge Private Market Index — which reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies that are actively traded in the private market — by 29% over this period.
Valuation and Funding History
At Rubrik’s current Forge Price, the company has an implied valuation of slightly above $6 billion, according to Forge Data. In the company’s most recent round in August 2021, a Series E financing led by Microsoft, the company raised $420 million,15 which at the time valued the company at $4 billion.16 All told, the company has raised over $715 million from a group of investors including Microsoft, Lightspeed, Bain Capital, Khosla Ventures, IVP, and Greylock Partners.17
Looking Ahead
Rubrik has not yet announced full details on its planned IPO. More information — such as initial pricing, the number of shares to be made available, and the total amount to be raised — will be provided after the company makes its formal announcement.
Pricing and Valuation Details
On April 15, 2024, Rubrik announced additional details on its planned IPO. The company plans to issue 23 million shares at a price between $28 and $31, raising up to $713 million. This would lead to a valuation of approximately $5.44 billion based on the potential opening price.18
Next Steps
If you’re interested in investing in private companies like Rubrik, read more about pre-IPO investing or register on Forge Markets today to get started.
Some Frequently Asked Questions About Rubrik IPO
More information is available on Forge’s Rubrik IPO page and at Forge Data.
No, individuals must be an accredited investor to invest in Rubrik or other pre-IPO companies. Learn more about becoming an accredited investor by clicking here.
Early April 2024.
As of March 31, 2024, the company had an implied valuation of just above $6 billion, based on the company’s Forge Price.
About the Author
Craig Derbenwick is Senior Director of Content Strategy at Forge. In his role, he leads the development and execution of cross-channel marketing and thought leadership content. Prior to Forge, he spent 15 years in financial marketing roles and as a consultant for asset management and fintech companies. Read more from Craig.