Carbon Black: Endpoint Security Software Leader Charges to IPO

Waltham, MA-based Carbon Black was founded in 2002 as Bit9, changing its name to that of a company it acquired in 2014. The firm is a pioneer in the next-gen cybersecurity space, helping organizations improve the safety of their internal networks against endpoint attacks.

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The endpoint security software vendor announced its first IPO price range on Apr 23, aiming to secure a $15 to $17 share price in its public debut. The price range puts Carbon Black at a unicorn valuation of more than $1 billion.

Carbon Black’s $136 million offering is higher than the original $100 million target that the company had estimated when it first filed regulatory documents for an IPO weeks ago. Underwriters Morgan Stanley, JPMorgan, KeyBanc Capital Markets, William Blair & Co., Raymond James & Associates and Cowen & Co will have the option to buy another $20 million of stock at a later date.

The firm has raised a total of $191.7 million over its life as a private company, most recently inking $14 million to add to its Series F funding in 2016, which closed at just over $68.5 million, according to Crunchbase.

After the Series F round, Carbon Black had a post money valuation of $609 million, according to Astasia Myers of Redpoint Ventures.

Backers of the SaaS firm include Atlas Venture, which controls 17% of the company pre-IPO, Highland Capital Partners with a near 15% share, Kleiner Perkins Caufield & Byers, with an 8.8% stake, Point 406 Ventures at 7.7% and Sequoia Capital at 9.9%.

Carbon Black’s software analyzes large amounts of data to optimize IT security, and has a robust partner program consisting of MSSPs, or managed security service providers, Solutions Providers (resellers and distributors), incident responders and consultants, and an integration network.

Management is head by Chief Executive Officer Patrick Morley, who has been with the firm since 2007 and previously held leadership titles including Chief Operating Officer at Corel Corporation and CEO of Imprivita.

In 2017, Carbon Black reported a net loss of $55.8 million on $162 million in revenue, up 39% over 2016. The company plans to trade on the Nasdaq under the ticker symbol “CBLK.”