Cybereason, an endpoint security startup, abandoned its plans to go public citing the slump of the US stock market. Consequently, the company has hired JPMorgan Chase to find a potential buyer. This decision also comes on the heels of its sluggish growth and unfavorable competition in the market.

Earlier this year , Cybereason filed for an initial public offering (IPO) in the US that could have valued the company at more than USD 5 billion. The company also finalized underwriters and is expected to go public in 2H2022. Following that, it laid off nearly 100 employees (~10% of its workforce) in Israel, the US, and Europe in June this year. Cybereason reported that it had to prioritize “profitability over top-line growth,” as the bullish tech market deteriorated for some cybersecurity startups and weakened the demand for IPOs. The company operated in more than 50 countries and had an employee headcount of 1,500 prior to this retrenchment.

Cybereason’s current valuation stands at USD 2.5 billion. In 2021, Cybereason generated nearly USD 160 million in annual recurring revenue (ARR), up 33% from USD 120 million in 2020. The company also grew its employee headcount from 500 in the spring of 2020 to 1,100 in November 2021.

According to reports, Google Cloud could be a possible acquirer, as it invested USD 50 million in Cybereason in October 2021, and acquiring Cybereason would enable Google to have an offering that competes with Microsoft Defender for Endpoint.

Analyst QuickTake: Earlier this year, cloud-native application security startup, Snyk too hired Morgan Stanley and Goldman Sachs in preparation for its IPO with the aim of doubling its valuation since its last funding. Snyk has since joined the long list of cybersecurity startups that have been rationalizing their workforce in a bid to manage cash in a turbulent economic environment and bearish public markets. The current status of its IPO is unknown as no other disclosures have been made by the company in this regard,