Bipul Sinha, the CEO, Chairman, and Co-Founder of Rubrik Inc., had a triumphant moment as he rang the opening bell during his company’s IPO at the New York Stock Exchange on April 25, 2024. Rubrik, a cybersecurity software startup backed by Microsoft, saw its stock price soar as it made its debut on the public market. The stock opened at $38.60 per share, surpassing its IPO price of $32 per share. By the end of the trading day, Rubrik’s shares had climbed 16% to $37, raising $752 million and giving the company a valuation of $5.6 billion.
The success of Rubrik’s IPO is a positive sign for the tech industry, as public market investors continue to show a strong appetite for tech companies going public. In recent years, there has been a reluctance among young technology companies to go public due to concerns about the economy and investor interest in profitable companies. However, with Rubrik’s successful IPO and other tech companies like Reddit and Astera Labs also going public, there may be a shift in the trend.
Founded a decade ago, Rubrik reported a net loss of $354 million in its latest fiscal year, but has seen a significant increase in revenue from subscriptions, now accounting for 91% of its revenue. Microsoft’s investment in the company in 2021 has also boosted Rubrik’s profile, with CEO Bipul Sinha retaining 8% control and Lightspeed Venture Partners holding 25% of the voting power.
Sinha expressed confidence in Rubrik’s readiness to go public, stating that the timing was based on market conditions and the company’s preparedness. He emphasized the importance of staying public and providing value to investors in the long term.
According to Ravi Mhatre, managing director at Lightspeed Venture Partners, the decision to go public is carefully considered and involves input from bankers and investors. Sinha’s interactions with public market investors have provided valuable insights into what investors are looking for in a company going public.
Overall, Rubrik’s successful IPO is a reflection of the strength of the tech industry and the interest from investors in innovative and promising companies. As more tech companies consider going public, it will be important for them to focus on creating value for investors and maintaining a strong presence in the marketplace.
In my opinion, the success of Rubrik’s IPO is a positive sign for the tech industry and demonstrates the resilience and potential of tech companies in the public market. As the economy continues to evolve, it is important for tech companies to focus on building sustainable business models and providing value to investors. Going public can be a significant milestone for a company, and it is essential to approach it strategically and thoughtfully to ensure long-term success.