Rubrik shares hit the New York Inventory Trade Thursday, debuting at $38 a share. The cybersecurity firm priced its shares at $32 apiece Wednesday night time, only a hair over its preliminary goal vary of $29 to $31 after elevating $752 million. This share value provides Rubrik a totally diluted valuation of $6.6 billion, up 88% from its final main valuation of $3.5 billion in 2019.

The inventory settled at $37 a share on the finish of buying and selling on Thursday.

Rubrik sells cloud-based safety software program to enterprise prospects and has 1,700 prospects with contracts price greater than $100,000 and 100 prospects who pay the corporate greater than $1 million a yr. The Silicon Valley startup was based in 2014 and has raised greater than $550 million in enterprise capital, in response to Crunchbase information.

The VCs most hoping that Rubrik’s inventory retains climbing are Lightspeed and Greylock. Lightspeed backed the corporate in 5 separate rounds, together with main the corporate’s Sequence A spherical again in 2015. Lightspeed, and people affiliated with it, owns 23.9% of Rubrik’s shares previous to the IPO, in accordance the corporate’s S-1 filing. The corporations’ conviction within the firm would possibly come from the truth that Rubrik co-founder and CEO Bipul Sinha was previously a accomplice at Lightspeed from 2010 to 2014. Sinha owns 7.6% of shares.

Greylock holds 12.2% of Rubrik’s shares. The enterprise agency led the startup’s $41 million Sequence B spherical in 2016 and took part within the Sequence C and Sequence D rounds as effectively. Greylock accomplice Asheem Chandna has sat on the corporate’s board since 2015.

Along with Sinha, Rubrik’s different two co-founders maintain notable stakes. Arvind Jain, a co-founder who’s now the CEO of AI work assistant startup Glean, holds a 7% stake. Arvind Nithrakashyap, co-founder and present Rubrik CTO, holds 6.7%.

Different big-name VCs backed the corporate, too. Khosla Ventures led Rubrik’s Sequence C spherical in 2016; IVP led the corporate’s Sequence D spherical in 2017; and Bain Capital Ventures led the corporate’s Sequence E spherical in 2019. It’s unclear what share of shares these corporations nonetheless personal, nevertheless it’s beneath 5%, as none of those traders had been named within the firm’s S-1. NBA all-star Kevin Durant’s Thirty 5 Ventures was additionally an investor.

The outcomes of Rubrik’s IPO are beneath extra scrutiny than a number of the different latest public listings, as a result of Rubrik’s debut appears extra like a 2021 IPO and fewer like the opposite 2024 IPOs. Ibotta debuted as a worthwhile firm. Astera Labs and Reddit each had just lately swung to a GAAP internet revenue. Rubrik, nevertheless, is an unprofitable enterprise seeing its losses proceed to develop, not shrink.

The corporate reported that its income grew a bit of beneath 5% from its fiscal 2023 yr to its fiscal 2024 yr, rising from $599.8 million to $627.9 million. On the identical time, the corporate’s losses continued to develop: Its internet losses grew from 46% in its fiscal 2023 to 56% in its fiscal 2024 yr.

The corporate’s metrics do have a brilliant spot, nevertheless: subscription income. Within the firm’s most up-to-date fiscal quarter, subscriptions made up 91% of the income, up from 73% a yr prior. Subscription income tends to be sticky, and progress there may clarify why some traders are extra assured concerning the future prospects of Rubrik regardless of its present losses and lack of profitability.

Rubrik is the fourth venture-backed firm to go public in latest months as traders appear desirous to reopen the IPO market. All three firms that went earlier than Rubrik — Ibotta, Reddit and Astera Labs — popped on the primary day of buying and selling and have all since settled, some in higher positions than others. However none has been a catastrophe or unfavorable omen for different potential IPOs this yr.

Whereas 4 constructive IPO debuts may spark extra firms to come back off the sidelines, the present steerage that rate of interest cuts might not come as early in 2024 as many had predicted might put a damper on the IPO market’s latest momentum.