Alert: Cloud Software Startup Hashicorp Files For IPO

Hashicorp logo

Hashicorp, a vendor of software used by enterprises to manage their cloud infrastructure, is the latest hot Silicon Valley startup to hit the IPO train. It’s unveiled an S-1 filing for an initial public offering with the US SEC, showing its intention to list on the New York Stock Exchange (NYSE).

Hashicorp provides cloud-based versions of open-source software used by companies to manage their cloud infrastructure. It has various software tools covering password management, networking, app deployments, and similar functions.
  • Judging by the contents of its S-1 filing, Hashicorp has a solid business. It brought in $211mn in revenue in the fiscal year ended January 31, 2021, compared to $121mn in the previous year. In the six months ended July 2021, its revenue was $142mn, compared to $95mn in the same period last year.
  • Net-wise, Hashicorp isn’t profitable, but its losses are reasonable compared to its revenue growth over the years. It lost $84mn in its recent fiscal year and $40mn in the six months ended July 2021.
  • Hashicorp breaks down its revenue into three segments; licensing, support, and cloud-hosted services. Out of the three, support brings in the vast majority of revenue followed by licensing, then cloud-hosted services. The company says it serves over 2,000 enterprise customers, so we can expect its revenue tap to keep flowing richly.
  • Hashicorp was founded in 2012. Since then, it has grown rapidly, with over $300mn in VC funding and a valuation of $5.1bn from its last funding round. For its IPO, the rumour mill is that Hashicorp is seeking a valuation above $10bn. 
  • Hashicorp’s main VC shareholders include Mayfield, GGV Capital, True Ventures, and Redpoint Capital, each having stakes of over 5%. On the individual side includes co-founders Mitchell Hashimoto and Armon Dadgar.
Hashicorp has filed to list on the New York Stock Exchange with the trading symbol “HCP”.

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