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Snyk – a popular developer security platform in a growing space known as DevSecOps – is assembling all the components needed to go public, said co-founder and president Guy Podzarni. The company would ideally be “ready to pull the trigger” on an initial public offering (IPO), Podzarni told VentureBeat.
A December Bloomberg report states that Snyk is preparing for an IPO in the middle of this year, and is discussing listings with banks.
This week, Podjarni declined to say whether Snyk could have an IPO in 2022 – but made it clear that going public is the way the company is going.
“It simply came to our notice then. And we’re building and developing the company accordingly, “said Podjarni, a former chief technical officer at Akamai from 2012 to 2015, who he left in 2015 to cofound Snyk.
“We monitor the market and we continue to grow and improve our system – so we are ready to pull the trigger at the right time,” he said, referring to the question of when we will do it.
The Boston-based firm drives revenue growth, with a marquee customer list and valued at $ 8.5 billion.
Ultimately, Snyk is positioned as a key player within the rapidly evolving realm of cybersecurity, driven by vulnerabilities and concerns of insecure software supply chains. Research firm MarketsandMarkets predicts that DevSecOps costs will reach $ 5.9 billion by 2023, up from $ 1.5 billion in 2018.
The horizon is expanding
The company’s latest move to expand its territory comes with the acquisition of Fugue, a move that expands the company’s offerings in the red-hot cloud security market. MarketsandMarkets sees cloud security spending reach $ 77.5 billion by 2026, up from $ 40.8 billion last year.
Fugue’s acquisition aims to make it easier for developers to secure the cloud infrastructure needed to run the application. While Snyk specializes in offering tools for code scanning and fixing, Fugue brings capabilities to find misconfigurations in the cloud infrastructure, along with its solution for Cloud Security Posture Management (CSPM).
This is the fifth acquisition for Snyk in the last 18 months, and the company reports that its revenue growth rate in 2021 was faster than in 2020 – a difficult achievement as companies grow in size. “And we’re seeing that trend continue into Q1,” Podzarni said.
Snyk’s main clients include Google, AWS, Salesforce, Comcast, CVS Health, Atlassian, MongoDB and Reddit. The company reports a total of more than 1,500 customers.
Choosing the right time
Growing to this size seems to pave the way for Snyk, who already has an equivalent rating of several public companies, to join their ranks.
In an interview with VentureBeat, Podzarni said Snyk was “working to make sure we can go public when market conditions are right.”
“We will choose our time wisely,” he said.
Snyk has raised a total of $ 775 million so far, including a $ 530 million Series F funding round in September that brought with it an valuation of $ 8.5 billion.
If it completes its IPO, Snyk will join other companies that focus on code security, including JFrog, which was unveiled in 2020.
Meanwhile, another large company in space, Sonatype, “may be unveiled soon later this year,” CEO Wayne Jackson recently told VentureBeat. The Sonatype IPO is more likely to come in 2023, however, Jackson said.
Code security concerns
DevSecOps is an approach to improving application security by aligning development, security and performance. The idea is to enable secure applications right during the development process – and it’s a growing priority for many enterprises, as vulnerabilities like Log4Shell and growing software supply chain attacks hurt the industry.
CSPM, meanwhile, has become an essential tool for many cloud-centric enterprises – although misconfiguration is a major cause of data breaches in the cloud. According to Gartner, more than 99% of violations in the cloud are due to misalignment or other error.
The terms of the acquisition for Fugue were not disclosed, but Podjarni said it was one of the largest acquisitions ever made by the company in the DevSecops space.
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