It's the stuff cybersecurity startup dreams are made of.
CrowdStrike just upped its IPO targets by 30%, which could make it the most valuable cybersecurity company in history at the time of its initial public offering.
Silicon Valley Business Journal looked into this:
The record for the highest initial market cap by a data security business until now, according to PitchBook Data, was held by Santa Clara-based Palo Alto Networks Inc. It was worth about $2.5 billion on its IPO day in 2012 and its market cap has since grown to more than $19 billion.
So while Palo Alto was worth $2.5 billion on its IPO day, it is possible CrowdStrike could land in the $4-5 billion range if the new targets are correct.
A week ago, CrowdStrike shares had a target range of $19 to $23. Now the company says those shares are targeted to be between $28 and $30 each.
Why is the CrowdStrike IPO so hot?
Nasdaq.com spells out what is driving the demand:
1. CrowdStrike grew revenue at a 118% Compound Annual Growth Rate from 2016-2018 and 108% in the most recent quarter.
2. Its addressable market is multi-billion as it displaces legacy providers such as Symantec and McAfee.
3. It expects to drive further growth by continuing to cross-sell to existing customers, expanding into the middle market, and selling to the US government.
On that last point, CrowdStrike definitely has friends in high places. It has helped Democrats and helped Republicans understand when and how they were being hacked.
CrowdStrike will start trading June 12, 2019, on the Nasdaq, under the symbol "CRWD."
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