By Aidan Gregory
20 Apr 2021
The corporate governance issues surrounding Darktrace, the UK AI cyber security company that confirmed its intention to float on the London Stock Exchange this week, can be generously described as unusual but they are not a shock to the market, and are unlikely to put investors off completely, providing the company seeks a sensible valuation.
Founded in Cambridge in 2013, Darktrace uses AI to target cybersecurity threats as they are automatically detected in systems. The company has over 4,700 clients including many blue chip companies and public bodies and counts KKR as a major investor, as well as Summit Partners, Vitruvian Partners, and the venture capital arm of Samsung.
Darktrace became the first cybersecurity company to pursue a London initial public offering (IPO) since 2018, revealing growing revenue and a significant channel sales motion.
The England-based company said more than 370 active channel partners across nearly 70 countries accounted for 35 percent of Darktrace’s revenue as of Dec. 31, according to a registration document filed Monday. Darktrace is looking to raise between US$350 million and US$400 million in a London Stock Exchange IPO that could value the company at US$4 billion, The Wall Street Journal reported.
“Although the majority of the Group’s sales are direct to customers, the Group also relies on its channel partners to sell and market its products,” Darktrace wrote in its 163-page registration document. “These channel partners increase brand visibility and sales for the Group and assist in penetrating markets where the group does not have a significant direct sales team.”
And it is set to call on a string of City grandees and former government ministers to press the flesh on its behalf.
Former universities and science minister David Willetts, 65, was recently appointed to the board, and ex-BT boss Sir Peter Bonfield is a director who has served on the boards of firms such as Sony and Ericsson.
Other advisers include former MI5 director Lord Evans, senior CIA veteran Alan Wade and former UK home secretary Amber Rudd. They could be key to keeping investors on-side.
Darktrace was founded in 2013 by a group of Cambridge mathematicians and former spies.
Clients range from Rolls-Royce to Coca Cola. But the long-running association with Lynch, 55, could be a thorn in its side.
Cybersecurity Vendor Darktrace Eyes IPO Amid Surging Sales
British cybersecurity firm Darktrace reveals growing revenue, fluctuating losses, and a significant channel sales motion in its IPO filings, with partners bringing in 35 percent of revenue as of Dec. 31, 2020. By Michael Novinson April 13, 2021, 01:28 PM EDT
Darktrace became the first cybersecurity company to pursue a London initial public offering (IPO) since 2018, revealing growing revenue and a significant channel sales motion.
The Cambridge, England-based company said more than 370 active channel partners across nearly 70 countries accounted for 35 percent of Darktrace’s revenue as of Dec. 31, according to a registration document filed Monday. Darktrace is looking to raise between $350 million and $400 million in a London Stock Exchange IPO that could value the company at $4 billion, The Wall Street Journal reported.