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SentinelOne/Dan Loeb: CEO insecurity triggers cyber security bonanza

SentinelOne, a cybersecurity company backed by billionaire hedge fund investor Daniel Loeb, has chosen a good time to publish.According to, the cost of online attacks hit a record high in 2020 FBI.. Recent attention-grabbing hacks at Brazilian meat packaging company JBS and the Colonial Pipeline have highlighted the sophistication, success and financial damage of hacking. The shortage of skilled cyber workers exacerbates the problem.

Take advantage of SentinelOne to help you find online threats using machine learning and artificial intelligence. The company touts its services as a cheap way for businesses and governments to protect themselves. Since then, we are trying to secure a valuation of over $ 8 billion. Push up the price range For that first public offering.

That is a big profit. Founded in 2013, the Silicon Valley-based SentinelOne was highly regarded. For $ 3 billion In a private funding round last November. Last year’s revenue more than doubled to $ 93 million, but net losses also increased from $ 76 million in the previous year to $ 117 million.

But big potential markets, growing anxiety, and SentinelOne’s rapid earnings growth should be enough to convince investors to overlook its losses and dual-class equity structure.

The surge in crime that attracts attention means that businesses are willing to spend more freely to counter threats.Corporate spending on online security Reach $ 150 billion This year compared to $ 113 billion in 2018. In personal conversations, CEOs often cite hacking as their greatest fear.

The number of laptops, smartphones and other devices connected to the Internet continues to grow, creating more opportunities for hackers. SentinelOne’s use of AI is particularly well suited for processing large amounts of data to protect it from cyberattacks.

Assuming SentinelOne can double this year’s revenue, the $ 8 billion valuation is about 43 times more future revenue, in line with rival CrowdStrike’s revenue. The business was unprofitable when it was released in 2019, but it is still the case. Nevertheless, its market value has since surged more than seven times to nearly $ 58 billion. Loeb and fellow investors have a reasonable basis for expecting SentinelOne to emulate its success.

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SentinelOne/Dan Loeb: CEO insecurity triggers cyber security bonanza Source link SentinelOne/Dan Loeb: CEO insecurity triggers cyber security bonanza

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