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There are several factors that might make you think that Snyk, the security software startup recently valued at $7.4 billion, will go public soon.
It was drafting an IPO prospectus in January 2024 with potential plans to file it within months I mentioned. The company also recently hit $300 million and says it’s on track to be cash flow positive in 2025 CEO Peter MacKay to publish on LinkedIn earlier this week. Then there is the general optimism for a friendlier regulatory environment under President Trump.
However, in exclusive comments to TechCrunch, McKay says Snyk is in no rush to go public.
“We have $435 million in the bank and we are very close to breaking even. In 2025, we won’t burn any cash, so I can choose when to go public. I don’t need to rush,” he said.
MacKay believes regulatory conditions will improve next year, but sees 2026 as more favorable.
“I think the new management will make things a little easier in terms of both IPOs and M&A. We feel like 2025 will be better and 2026 will be better.” “Internally, we feel as though we are ready (for an IPO). “Externally, I think we are watching.”
Snyk, which alerts developers to potential issues as they code, has raised over $1 billion burnt About $173 million in 2023 The company revealed. MacKay says he expects to cut losses by half in 2024 and break even next year.
But Snyk will not scale back its strategy of acquiring smaller development security companies such as Helios this year and DeepCode in 2020, for undisclosed sums. Snake Credits DeepCode for being the backbone of the AI product recently surpassed $100 million in ARR alone, a third of Snyk’s total revenue.
“I think the only place we’re going to burn money is in acquisitions,” MacKay said.
There’s a lot of hype about AI programming tools replacing developers, which could one day pose a problem for Snyk’s business model. But in the meantime, McKay says Snyk has seen an increase in the number of developers using its platform over the past 12 months.
The more programmers rely on AI to write code, the better for the company. MacKay estimates that AI-generated code has 30-40% more vulnerabilities, especially when used by novice developers. This gives more opportunities to Snyk’s security tools.
“It was definitely a tailwind,” he said.
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