0
Exclusive: API startup Noname Security nears 0M deal to sell itself to Akamai

Exclusive: API startup Noname Security nears $500M deal to sell itself to Akamai

Noname Security, a cybersecurity startup that protects APIs, is in advanced talks with Akamai Technologies to sell itself for $500 million, according to a person familiar with the deal.

Anonymous Co-founded in 2020 by Oz Golan and Shay Levy, it is headquartered in Palo Alto but has Israeli roots. The startup raised $220 million from venture investors and It was last valued at $1 billion. in December 2021 when it raised $135 million in a Series C led by Georgian and Lightspeed. While the sale price is a significant discount from that valuation, the deal at this time would be for cash, the person said. This Agreement is not final and may or may not change at all.

Other investors that have backed Noname include Insight Partners, ForgePoint, Cyberstarts, Next47 and The Syndicate Group.

While the potential deal price is half of Noname's last private valuation, those who invested in the early stage will get a meaningful return from the sale. Meanwhile, the deal should allow later-stage investors, especially those who invested in late rounds, to get a full return on their invested capital, if not a profit. Which he hoped for in those tough days of 2021 when there was money. Flows and prices were optimistic.

Dell values ​​the company at about 15X annualized recurring earnings, the person said. About 200 Noname employees are expected to transfer to Akamai if the sale closes.

Akamai declined to comment. A security spokesperson told TechCrunch, “As a matter of policy, we refrain from commenting on rumors or speculation.”

the information Reported In January, Noname was looking to raise another financing round at a significantly lower price. In February, Israeli news outlet Calcalist reported that Noname was among them. Negotiating with multiple potential buyersIncluding Akamai.

Many VC-backed companies that raised capital at the height of the tech boom saw their valuations sink after the US Fed raised interest rates. Many are now simultaneously looking for buyers and a new round of funding, known in the finance world as a dual-track process. Meanwhile, several later VCs are looking for liquidity after more than a year of frozen IPO market. So, the general sentiment in the venture industry is that, if strong IPOs don't return soon, it will be time to buy for M&A activity.

About the Author

Leave a Reply