Cybersecurity startup Snyk reportedly planning mid-2022 IPO

SECURITY

Cybersecurity startup Snyk Ltd. is planning to go public via an initial public offering as early as next year, according to a report from Bloomberg late today.

Referencing people familiar with the matter, the report says Snyk is currently talking to banks about a mid-2022 IPO. The company is said to be targeting a float at a valuation greater than $8.6 billion, its valuation as of its last venture capital round of $75 million in September.

Founded in 2015, Snyk pitches itself as a developer-first security solution that helps customers use open-source code and stay secure. The company’s platform finds and fixes known vulnerabilities and license violations in open-source dependencies.

Snyk’s service integrates into existing developer workflows, including integration with source control services such as GitHub and BitBucket, to monitor platforms-as-a-service and serverless apps in production.

Over the past two years, Snyk has extended its feature set to adjacent areas. The company’s platform can detect both software vulnerabilities and misconfigured infrastructure settings that may make a company’s cloud environment susceptible to cyberattacks.

In addition, Snyk can help developers ensure that they are using the open-source components they incorporate into their projects following those components’ licensing terms.

Snyk has found a willing audience in terms of clients. Notable customers include Amazon Web Services Inc., Google LLC, Australia Post, Datadog Inc., Salesforce Inc., Atlassian Corp. plc, Twilio Inc. and Revolut Ltd.

Coming into its potential IPO, Snyk has raised $1.4 billion in venture capital funding, according to Crunchbase. Along with investors such as T. Rowe Price, Boldstart Ventures, Temasek Holdings and Koch Industries, some of its investors also are some of the company’s biggest customers: Salesforce Ventures and Atlassian Ventures.

As noted in September, Atlassian intends to deliver expanded integrations with Snyk across its Jira Software, Jira Service Management and Compass offerings. Developers use Jira Software to track outstanding application issues that need to be fixed, including cybersecurity issues. Jira Service Management enables companies to deliver help desk services, while Compass is a tool that assists developers with understanding the code of the applications they’re working on.

Salesforce uses Snyk’s tool internally. Salesforce’s investment was said to give it a more significant stake in an increasingly important player in the developer tooling market.

Image: Snyk