Noname Security Seals Acquisition Deal with Akamai for $500 Million
The Inside Story of a Significant Valuation Drop
From Unicorn to Acquisition: Noname Security’s Journey
Noname Security, an Israeli cybersecurity startup specializing in API protection, is nearing the completion of a $500 million acquisition deal with Akamai Technologies. This acquisition marks a significant moment for the startup, which was valued at $1 billion in its last fundraising round in December 2021.
Previous Valuation Disagreements
Negotiations between Noname Security and Akamai began in February 2023, but stalled due to differences in valuation. However, the companies have now reportedly reached an agreement, and the acquisition is expected to close soon.
Reasons for Valuation Drop
The current $500 million deal represents a substantial drop from Noname Security’s previous $1 billion valuation. Industry experts speculate several reasons for this decline:
*
- The broader market downturn and decline in tech valuations
- Increased competition in the API security market
- Noname Security’s revenue growth not meeting expectations
Impact on Investors
The acquisition price will be a disappointment for Noname Security’s investors, particularly those who joined the company at later stages when the valuation was higher. Georgian and Lightspeed, two major investors, are among those who may be facing losses.
Noname Security’s Innovation
Despite the valuation drop, Noname Security has made notable contributions to the cybersecurity industry. The company’s platform analyzes configuration, traffic, and code to identify a wide range of API vulnerabilities, including misconfigurations and design flaws.
Founders’ Background
Noname Security was founded in 2020 by CEO Oz Golan and CTO Shay Levi, two former Israeli Defense Forces officers. Golan previously served as Director of Engineering at NSO, while Levi was part of the elite Unit 8200.
Conclusion
The acquisition of Noname Security by Akamai is a significant event in the cybersecurity industry. While the valuation drop may be disappointing for investors, it underscores the challenges that startups face in the current economic climate. Noname Security’s innovative platform and experienced team will undoubtedly continue to play a vital role in protecting APIs from cyber threats.