SentinelOne IPO everything you need to know about SentinelOne

When did SentinelOne IPO?

The SentinelOne IPO took place on June 30 with the listing raising around $1.2 billion. The company priced 35 million Class A shares at $35, but closed the following day at $42.50 for a market capitalisation of some $10 billion.

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What does SentinelOne do?

SentinelOne is a Silicon Valley-based cybersecurity company offering machine learning-focused software to help businesses fend off online attacks.

The company was founded in 2013 by serial entrepreneur Tomer Weingarten, along with Almog Cohen and Ehud Shamir. It began with a vision to redefine endpoint security; an endpoint being any device, such as a laptop or desktop computer, connected to a network.

The team sought to set the business apart from signature-based security techniques through its ‘execution inspection technology’, a real-time system that dynamically monitors endpoint processes to detect, predict, block and remove both known attacks and advanced malware.

In its founding year, the company was able to secure a $2.5 million round of seed funding led by Granite Hill Capital Partners. The investment was put towards R&D and moving the product from beta to launch. A $25 million round followed in 2015, this time led by Third Point Ventures, which allowed the company to expand sales, marketing, and customer support operations.

SentinelOne would go on to raise a further six rounds to the present day, with its total funding sitting at $696 billion, according to Crunchbase. The company’s revenues for 2020 were in excess of $93 million, more than double the sales from 2019. As of June 2021, the company has around 700 employees and more than 4,000 customers. 

How does SentinelOne make money?

SentinelOne makes money through the sale of its endpoint security software to enterprises, with the company operating a tiered pricing system starting at $45 per user per year. For comparison, the Falcon Prevent Next Generation Antivirus product from close competitor CrowdStrike (see below) starts at $59.99 per user per year.

Who are SentinelOne’s competitors?

SentinelOne has a broad range of competitors in the cybersecurity space including Microsoft, Kaspersky, McAfee, Symantec and many others. However, CrowdStrike, founded in 2011 and with backing to the tune of $481 million, is seen as the closest competitor in terms of endpoint protection services, with both companies using AI machine learning techniques to protect endpoints from attacks.

However, Crowdstrike’s valuation stands at around $46 billion as of 2021, dwarfing the valuation of SentinelOne even in the event of the latter hitting its IPO target valuation. As to which service is better, there is no clear consensus at this point, with a Gartner peer rating of 4.9 stars out of 5 for each service as of June 2021.

What is SentinelOne's business strategy?

SentinelOne’s business strategy, in its simplest terms, is to help companies protect their data. But the basis of this strategy involves constant evolution as attackers frequently update their approach to disrupting operations, breaching data, and inflicting damage. To this point, the company has evolved from a cloud-native endpoint protection solution to a comprehensive cybersecurity platform that seeks to protect every asset in an enterprise.

After its 2015 financing round of $25 million, the company embarked on a hiring push to grow headcount from 50 to 120, with Weingarten expressing the intention to ‘reinvent most of the stuff that’s out there’. By 2017, and a $70 million fundraise later, the company rapidly expanded its sales and marketing efforts and R&D in an attempt to bring its product to enterprises, services providers and government organisations.

Along the way, SentinelOne has partnered with other tech organisations to broaden the reach of its product. In March 2020 the company announced a plan to partner with manufacturer Lenovo to integrate SentinelOne’s platform within Lenovo’s ThinkShield security portfolio, making SentinelOne a core component of Lenovo’s security offerings. Other collaborations include cyber insurance operator Coalition and IT solutions company Bytes.

Is SentinelOne profitable?

SentinelOne is not profitable as of June 2021. Figures from the company show a net loss of $62.6 million for the three months ending April 30 2021. As with many unprofitable companies set to IPO, investors will be keen on understanding how long the company expects to sustain a burn rate and when the move into profitability is expected to occur.

How much is SentinelOne worth?

SentinelOne has a market capitalisation of around $10 billion following its IPO, as mentioned above. Prior to the listing, the company's value stood at around $3 billion following its 2020 fundraise of $267 million.

Who owns SentinelOne?

SentinelOne is owned by a range of venture capital investors such as Insight Partners, Granite Hill Capital Partners, Tiger Global Management, Redpoint, and Third Point Ventures. However, it is unclear what the exact percentage stakes are for each institution, or how much of the company is retained by its founders.

Board of directors of SentinelOne

SentinelOne has a number of key personnel that have helped progress the company to its current multi-billion-dollar valuation. Here are some of them, correct as of June 28 2021.

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