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.
CrowdStrike will start trading June 12, 2019, on the Nasdaq, under the symbol "CRWD."