Several factors might make you think Snyk, the developer security startup most recently valued at $7.4 billion, would be going public soon.
It was drafting an IPO prospectus in January 2024 with potential plans to file within months, The Information reported. The firm also hit $300 million ARR recently and says it’s on track to be cash-flow positive in 2025, CEO Peter McKay posted on LinkedIn earlier this week. Then there’s the general optimism of a friendlier regulatory environment under President Trump.
However, in comments exclusive to TechCrunch, McKay says Snyk isn’t rushing to IPO.
“We’ve got $435 million in the bank and are very close to break-even. In 2025, we won’t burn any cash, so I can pick the time when I go public. I don’t need to rush,” he said.
McKay does think regulatory conditions will improve next year, but sees 2026 as being even more favorable.
“I think the new administration will make things a little bit easier on both IPOs and M&A. We feel 2025 will be better and 2026 will be even better,” he said. “Internally, we feel as though we’re ready [to IPO]. Externally, I think we’re watching.”
Snyk, which flags potential issues to developers as they code, has raised over $1 billion and burned about $173 million in 2023, the company has disclosed. McKay says he expects to cut losses by half in 2024 and break even next year.
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