Home / Tech / $3.2 billion cyber company Cloudflare is eyeing a September IPO, just months after raising an $150 million funding round

$3.2 billion cyber company Cloudflare is eyeing a September IPO, just months after raising an $150 million funding round

cloudflare

  • Cloudflare, a cybersecurity company last valued at $3.2 billion, plans to go public in September, according to sources familiar with the company.
  • The company confidentially filed an S-1 with the Securities and Exchange Commission earlier in the summer, one person said.
  • Cloudflare hired Goldman Sachs to lead its IPO in 2018, then raised $150 million in private funding from Franklin Templeton in March.
  • Cloudflare is best known for its content delivery network services, which help websites and apps load faster, while protecting against hackers.

Cloudflare, a company that speeds up content delivery and protects websites from outside attackers, has its eye on a September IPO, according to people familiar with the company.

The San Francisco-based company hired Goldman Sachs to lead its IPO last October, but did not file with the Securities and Exchange Commission until this summer, according to one of the people.

Cloudflare, which was last valued at $3.2 billion in 2016, instead raised $150 million from Franklin Templeton in March 2019.

Its unclear what valuation Cloudflare is aiming for in its upcoming IPO. Cloudflare declined to comment.

Cloudflare is best known for its content delivery network (CDN) services, which helps websites and apps like customers including OKCupid and PF Chang’s load faster, while also protecting against hackers and other bad actors. Its biggest competitor in this space is Akamai Technologies. The company has also expanded to privacy and cybersecurity-related businesses.

Read more: Cloudflare CEO explains his emotional decision to punt The Daily Stormer and subject it to hackers: I woke up ‘in a bad mood and decided to kick them off the Internet’

The company was founded in 2009 by CEO Matthew Prince and Chief Operating Officer Michelle Zatlyn. It’s backed by Venrock, New Enterprise Associates, and Union Square Ventures, as well as Alphabet’s CapitalG and Microsoft, according to PitchBook.

Cloudflare’s IPO plans follow a robust year for public offerings, particularly for tech companies that sell to other businesses. The cybersecurity company CrowdStrike went public in June with a $6.7 billion valuation and is now worth nearly $20 billion, bucking industry trends that favor mergers and acquisitions over IPOs. Cloudflare’s smaller competitor Fastly went public in May.

Read more: Tech companies have raised billions of dollars from outside of venture capital like Fidelity and T. Rowe — but there’s a costly downside as these investors pile on

Though many of the largest and most hyped tech IPOs like Uber and Lyft hit before summer, there are still a few more unicorn tech startups in the line up for this year.

Datadog, an enterprise cloud monitoring company, hired bankers to lead an IPO expected later this year, according to Reuters. WeWork, the $47 billion unprofitable shared office space company, is also planning to IPO in September, according to Bloomberg.

SEE ALSO: Going public makes $12 billion CrowdStrike an anomaly in the crowded cybersecurity space where M&A is the norm. Here’s why.

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