CrowdStrike’s IPO

June 14, 2019 update: CrowdStrike has completed the IPO and is being traded under the ticker CRWD with valuation of $12B. The tech bubble is incredible!

CrowdStrike has filed a preliminary prospectus for an IPO. The narrative has totally shifted. It contains no claims of ability to attribute cyber-incidents. Its DNC work is not even mentioned. Instead, it focuses on the Cloud and AI. The prospectus even claims (falsely) that the company was founded “on the principle that the future of security would be driven by AI“.  The target valuation is $3.4B, despite a net loss of $140 million on $250 million in revenue (2018). From the prospectus:

 

We founded our company on the principle that the future of security would be driven by AI and that a cloud-native architecture would enable the collection of high fidelity data and scalability necessary for an effective solution. We call this cloud-scale AI. From the beginning, our strategy was focused on collecting data at scale, centrally storing such data in a singular model, and training our algorithms on these vast amounts of high fidelity data, which we believe is a fundamental differentiator from our competitors.

Adversaries today range from militaries and intelligence services of well-funded nation-states to sophisticated criminal organizations who are motivated by financial gains to hackers leveraging readily available advanced techniques. These groups and individuals are responsible for many breaches that involve theft or holding hostage financial data, intellectual property, and trade secrets. On a number of occasions, adversaries have launched devastating, destructive attacks that have caused significant business disruption and billions of dollars in cumulative losses.

We are investing in the acquisition of customers in the U.S. federal government vertical. Our platform recently received Federal Risk and Authorization Management Program, or FedRAMP, compliance certification and has been added to the Department of Homeland Security’s Continuous Diagnostics and Mitigation Approved Products List to provide federal agencies with innovative security tools. In addition, our platform is deployed in the AWS GovCloud.

If our solutions fail or are perceived to fail to detect or prevent incidents or have or are perceived to have defects, errors, or vulnerabilities, our brand and reputation would be harmed, which would adversely affect our business and results of operations.

The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our capital stock …

 We are an “emerging growth company” … An emerging growth company may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies.

CrowdStrike, Inc. was incorporated in the state of Delaware in August 2011.

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