The co-founders of Rubrik
Rubrik, the cybersecurity software startup Microsoft invested at a valuation of $4 billion in 2021, and plans to go public in New York as early as April as it handles a U.S. fraud investigation into one of its former employees, according to people familiar with the matter.
The investigation, which has not previously been reported, is being conducted by the U.S. Department of Justice and focuses on an individual who worked for Rubrik’s sales department, two sources said.
The DOJ is investigating whether the former employee diverted money paid by the U.S. government for 110 contracts with Rubrik to an operating entity he created, one of the sources said. The source said the contracts were worth a total of $46 million, but did not reveal the amount the employee allegedly diverted.
Rubrik is cooperating with the investigation and hopes it will be completed by the end of March so it can launch its initial public offering (IPO), the sources said. If successful, Rubrik, which has already confidentially registered the IPO with the U.S. Securities and Exchange Commission, will be a publicly traded company as early as April, the sources said.
The sources requested anonymity because the matter is confidential. Rubrik declined to comment, while the Justice Department and Microsoft did not immediately respond to requests for comment.
Reuters reported this last year Goldman Sachs, Barclays And Citi Group would lead Rubrik’s IPO as underwriters.
Founded in 2014 by venture capitalist Bipul Sinha, Rubrik makes cloud-based ransomware protection and data backup software. The company serves more than 5,000 business customers, including Nvidia And DIY store.
Rubrik generates annual recurring revenues of more than $600 million, with total revenue growing at a high rate of several percent, according to the sources.
According to PitchBook, the company has raised more than $1 billion in equity and debt to date from investors including Greylock Partners and Lightspeed Venture Partners.
The US IPO market has yet to recover from two years of subdued activity. Arc’teryx maker Amer Sports priced its $1.375 billion offering below its stated price range this week, after BrightSpring Health Services also discounted its IPO last week.