Rubrik, a data cybersecurity company that has raised over half a billion dollars in private funding, has filed for an IPO after the market closed on Monday. This move, coming shortly after IPOs from Reddit and Astera Labs, suggests a warming trend in the IPO market for tech companies.
As a private company, Rubrik last raised funds in 2019, securing $261 million at a $3.6 billion valuation. The company may be able to price its IPO shares higher than its last funding round, as secondary market trades have valued Rubrik at $6.6 billion. Data from Caplight estimates a valuation of around $6.3 billion.
Rubrik provides cloud-based data protection services to enterprises, boasting over 1,700 customers with significant recurring revenue. The company’s growth trajectory indicates a potential for a successful IPO.
Driving Rubrik’s Growth
Rubrik has seen modest revenue growth but a significant increase in subscription revenue, which is key to its IPO success. The company transitioned from perpetual licensing to a subscription model, with subscription revenue accounting for 91% of total revenue in its most recent quarter.
This shift to recurring revenue has improved Rubrik’s gross margins, despite ongoing net losses. The company’s IPO filing reveals a strategic focus on subscription-based revenue in a bid to achieve profitability.
The Silicon Valley Connection
Lightspeed Venture Partners and Greylock have substantial stakes in Rubrik, reflecting personal networks in Silicon Valley. Key figures from these firms have played pivotal roles in Rubrik’s funding rounds, setting the stage for a potentially successful IPO.
The involvement of high-profile board members, including NBA player Kevin Durant, highlights the interconnected nature of Silicon Valley. Founders like Bipul Sinha and Arvain Jain exemplify the close-knit community that drives innovation in the tech industry.
The Path Ahead
Rubrik’s IPO could set a positive precedent for other enterprise software companies eyeing public listings. With over 1,000 unicorns seeking exits, a successful Rubrik IPO could signal a favorable environment for tech companies in the public market.
