Snyk was worth $8.5 billion. The price of its employees' stock has collapsed.
Cybersecurity startup Snyk has seen its internal share valuation drop significantly from its peak of $8.5 billion to $1.16 per share. Analysts attribute this decline to the broader impact of AI on the software-as-a-service sector.
Why it matters
The devaluation reflects the cooling of the software startup market and the disruptive pressure AI tools are placing on established SaaS business models.
Snyk advisor and former CEO Peter McKay. John Tlumacki/The Boston Globe via Getty Images Cybersecurity startup Snyk was valued at $8.5 billion in 2021. The rise of new AI tools hit it hard. The price of each Snyk share given to employees has plummeted to $1.16, a document says. Snyk said it doesn't comment on employee share valuations. Snyk was one of cybersecurity's brightest startup stars, worth $8.5 billion at the height of the software boom. Now, the value of the stock it gives employees has fallen to a fraction of that, underscoring how dramatically fortunes have shifted for many software companies in the AI era. Snyk, which is headquartered in Boston, became best-known for selling a vulnerability scanner that quickly finds bugs in code. It was valued at $8.5 billion in a 2021 funding round and at $7.4 billion in a 2022 funding round.
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