Rubrik Inc., a Palo Alto-based cloud and data security startup backed by tech giant Microsoft Corp., is gearing up to file for an initial public offering (IPO) as soon as next week, according to sources familiar with the matter.
While details of Rubrik’s IPO plans, including the timing, could still undergo changes, people close to the matter, who preferred to remain anonymous due to the confidentiality of the information, disclosed the company’s intentions. A spokesperson for Rubrik declined to comment on the matter.
Rubrik is poised to join a string of companies eyeing public offerings following the recent successes of social media platform Reddit Inc. and semiconductor connectivity company Astera Labs Inc. Both companies not only met but also exceeded their IPO fundraising goals, experiencing significant rises in their trading debuts. Among the companies that have filed for IPOs in the past week are digital marketing software firm Ibotta Inc. and commodities trading platform Marex Group Plc.
In the current year, a total of 48 companies have collectively raised approximately $9.6 billion through IPOs on US exchanges, marking a substantial increase from the $3.8 billion raised by 46 companies in the first quarter of 2023, as per data compiled by Bloomberg.
Rubrik has been collaborating on its IPO plans with major financial institutions including Goldman Sachs Group Inc., Barclays Plc, and Citigroup Inc. The company is reportedly considering raising between $500 million to $700 million in its IPO, as reported by Bloomberg News in September.
Having confidentially submitted its IPO plans to the US Securities and Exchange Commission earlier, Rubrik is expected to disclose comprehensive details of its finances and operations in its upcoming public filing.
Microsoft’s equity investment in Rubrik dates back to 2021, as part of a financing round that valued the startup at $4 billion, according to data provider PitchBook. Rubrik’s impressive list of backers also includes Bain Capital Ventures, Lightspeed Venture Partners, Greylock Partners, and Khosla Ventures. Collectively, Rubrik has raised $1.18 billion to date, according to PitchBook data.
Rubrik’s decision to go public comes at a time when the demand for cloud and data security solutions is on the rise, driven by the increasing digitalization of businesses and the growing importance of safeguarding sensitive information from cyber threats.
