Report: Veracode, Cloud Cybersecurity Provider, Headed for Public Offering

Written by DH Kass 1
March 5, 2015

Cloud cybersecurity provider Veracode quietly has filed IPO documents with the SEC and will formally submit public S-1 materials soon.

Cloud cybersecurity provider Veracode quietly has filed IPO documents with the SEC and will formally submit public S-1 materials soon, according to a Fortune Term Sheet report.

The nine-year old Burlington, MA-based company, whose cloud-based security technology aims to secure Web, mobile and third-party applications for large enterprises, was said in an earlier Reuters report to be working with J.P. Morgan, UBS and Deutsche Bank on the offering, which could be valued as high as $800 million and come in May, according to Fortune.

Since launching operations in 2006, Veracode has raised more than $110 million in venture capital funding, including investments from In-Q-Tel, .406 Ventures and Atlas Venture. Last September, the company secured $40 million in Series F funding in a round led by Wellington Management.

Given the persistent outbreak of high-profile data intrusions and network break-ins, along with the success cloud storage vendor Box (BOX) experienced with its IPO earlier this year, chief executive Bob Brennan believes Veracode is particularly well-positioned to go public. In particular, its scanning technologies are designed to fix flaws in Web and mobile software to prevent cyberattacks.

After last September’s capital infusion that valued the company at some $450 million, Brennan, who previously helmed Iron Mountain, reportedly said the funding round would be its last ahead of a planned IPO, according to a BostInno report.

Brennan previously has pegged Veracode’s annual revenue for 2014 at about $44 million on 50 percent year-over-year growth.

Last December, Forrester Research considered Veracode a leader in application security based on evaluating 12 vendors in the market. Forrester awarded Veracode among the highest scores for product strategy and corporate strategy, pointing out its “capability to simultaneously scan thousands of websites … in real-time” with its web perimeter monitoring service.

“Veracode was designed from the ground up as an automated cloud-based service, delivering the speed and scale enterprises require to tackle application security on an enterprise-wide basis,” said Sam King, Veracode’s Strategy and Corporate Development executive vice president, of the Forrester recognition.