- Snyk was valued at US$8.5 billion in a funding round last year.
- Snyk supplies software security components to developers.
- The US IPO market has cooled down this year amid macroeconomic and geopolitical concerns.
Cybersecurity startup Snyk is preparing for an initial public offering (IPO) in the US market.
The Boston-based company hopes to capitalize on the demand for security-related products from companies driven by remote work and concerns over frequent ransomware and other hacking attacks.
The IPO's launch date was not immediately known but can happen sometime this year. The market’s volatility and other economic factors due to the Russia-Ukraine crisis will have a bearing on its decision.
Snyk was valued at US$8.5 billion in a funding round last year.
Reuters on Tuesday reported citing people familiar with the matter that Snyk has hired banks, including Morgan Stanley (MS) and Goldman Sacs (GS), to help it in the IPO process.
The cybersecurity company expects to double its earlier valuation, according to the sources.
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US IPO market
Snyk supplies software security components to developers. Demand for cybersecurity products has been growing over the past year, especially in 2021, when companies signed billion-dollar deals.
For instance, McAfee Corp signed a US$14 billion deal to be taken private. According to Reuters, KKR & Co Inc (KKR), which acquired McAfee, is also planning a sale or an IPO for Optiv Security Inc, a cybersecurity consultant it controls at a valuation of around US$3 billion.
The US IPO market has cooled down over several macroeconomic and geopolitical concerns this year.
Snyk has raised more than US$1 billion in venture capital from investors, according to Reuters.