Expected return of more than 100%
Rubrik is a Palo Alto company was founded in 2014. The startup has grown rapidly into a «unicorn» status for five years. According to rumors, it is preparing to conduct an IPO. Recently, United Traders has the opportunity to invest in this company. Talking about Rubrik and why this can be a good investment.
Rubrik provides data backup and recovery services. Despite the fact that they aren’t the only ones in this area, Rubrik was noticed the need to back up data stored in different places one of the first.
Large companies usually use cloud services and their servers at the same time, which creates fragmentation and complicates the work. Rubrik helps solve this problem. It allows you to organize your data and provides a whole platform for managing it.
Recently, the company also began to engage in security and compliance (compliance with state requirements and legal norms). This trend has grown organically from previous experience — usually backups are required when a failure occurs due to unauthorized access to data.
Rubrik has increased its customer base worldwide by more than 4 times over the last fiscal year. The company's customers are leaders in various industries, including two of the five largest biotechnology companies in the world, three of the five largest media companies, two of the three largest real estate agencies and many others.
January 2019. The company held an E round, attracted financing in the amount of $261 million and brought the total amount of raised funds to $553 million, while the company was valued at $3.3 billion. This was a big break for Rubrik: before that, the startup raised $180 million in 2017 and was valued at $1.3 billion.
Among the well-known investors of the company are Bain Capital Ventures (invested in Dynatrace, LinkedIn), Greylock Partners (invested in Facebook, Instagram, Okta) and IVP (invested in Twitter, Uber, CrowdStrike, Netflix, Zendesk).
Finance and estimate
February 2018. Rubrik announced that the rapid implementation of its solutions in enterprises would bring the company to an annual revenue of $300 million based on the current pace.
January 2019. According to the results of the round of financing, Rubrik was estimated at $3.3 billion. Given the rapid expansion of the market and the support of large venture companies, the expected return on investment is more than 100%.
When an IPO
At the beginning of this year, the startup hired Murray Demo. He is the former CFO of Atlassian. Also, the company hired new chief lawyer, Peter McGoff. The founders don’t talk about the exact dates, but often, it is the appointment of new leaders in the field of finance and law that hints to investors about the upcoming IPO.
Why you should invest in Rubrik?
— This is a promising company in a growing market. The need for enterprise data protection is growing and Rubrik is striving to become a leader in corporate cloud data management.
— The stock price before IPO is lower than on the eve of listing. The value of shares of successful companies is growing from year to year, so buying in advance, the investor can count on big profits.
— It is possible to buy as many shares as necessary. There are many people who want to buy shares immediately before the IPO, so investors receive shares only for a portion of the money they are willing to invest. A few years before an IPO, there is usually no such problem.
There is high competition in the data management market. The closest competitor is Cohesity. Rubrik is a privately held company that is not required to disclose its financial data, so that management and current investors have more information available than outside investors. Also, if it becomes necessary to sell Rubrik shares before the IPO, it will take time (more than 1 month).