zscaler

Lessons from cybersecurity exits

Dear F0und3r: What a month this has been for cybersecurity! One unicorn IPO and two nice acquisitions – Zscaler’s great debut on wall street,  a $300 million acquisition of Evident.io by Palo Alto Networks and a $350 million acquisition of Phantom Cyber by Splunk has gotten all of us excited. Word on the street is that in each of those exits, the founders took home ~30% to 40% of the proceeds. Which is not bad for ~ 4 /5 years of work. They can finally afford to buy two bedroom homes in Silicon Valley. Evident.IO Investment Rounds and Return estimates Date Select Investors Round Size Pre Post Dilution Estimated Returns / Multiple of Invested Capital Sep 2013 True Ventures $1.5m $5.25m $6.75 m 22% 44X Nov 2014 Bain Capital $9.8 m $18.1m $28.0 m 35% 10.7X Apr 2016 Venrock $15.7 m $35.0 m $50...

Zscaler soars 106% on first day of trading

It was a big debut for enterprise cloud security company Zscaler, which saw its shares skyrocket 106% on its first day of trading. After pricing at $16, shares opened at $27.50, and closed at $34. This was also well above the original expected price range for its IPO of $10 to $12. The company ultimately raised $192 million. In other words, there was significantly better-than-expected demand for Zscaler. But not everyone likes a big pop. This means the company could have technically sold shares for more and raised more money. Zscaler works with enterprises and says it counts 200 of the Forbes Global 2000 companies as customers. In an interview with TechCrunch, CEO Jay Chaudhry described the business as “the platform which was built in the cloud for the cloud.” He went on to explain that hi...