“Nearing a $500M Agreement: Noname Security, the API Startup, to be Acquired by Akamai”

Noname Security, a cybersecurity startup that protects APIs, is in advanced talks with Akamai Technologies to sell itself for $500 million, according to a person familiar with the deal. Noname was co-founded in 2020 by Oz Galan and Shay Levi and is headquartered in Palo Alto but has Israeli roots. The startup raised $220 million from venture investors and was last valued at $1 billion in December 2021 when it raised $135 million in a Series C led by Georgian and Lightspeed. While the sale price is a significant discount from that valuation, the deal as it currently stands would be for cash, the person said. In February, Israeli news outlet Calcalist reported that Noname was in negotiations with several potential buyers, including Akamai.

Noname Security, a new cybersecurity startup that focuses on protecting APIs, is currently in advanced negotiations with tech giant Akamai Technologies to be acquired for $500 million. This information comes from an anonymous source who is familiar with the deal.

The company was founded in 2020 by Oz Galan and Shay Levi, has its headquarters in Palo Alto, and has roots in Israel. Noname has received $220 million in investments from venture capitalists, and was last valued at $1 billion in December of 2021 after securing $135 million in a Series C funding round led by Georgian and Lightspeed. While the current sale price may be a significant decrease from its previous valuation, the transaction is said to be in cash. However, it should be noted that the deal is not yet final and may change or ultimately fall through.

Other investors who have shown support for Noname include Insight Partners, Forgepoint, Cyberstarts, Next47 and The Syndicate Group.

According to the anonymous source, while the potential sale price may only be half of Noname’s last private valuation, early investors are still expected to see a profitable return. On the other hand, the later stage investors may not see as high of a return as initially hoped, but they should still receive a full return on their investments. The current deal values Noname at around 15 times its annual recurring revenue, the source added. If the sale does go through, Noname’s approximately 200 employees are set to join Akamai.

Akamai declined to comment on the matter, while a Noname Security spokesperson informed TechCrunch that “As a policy, we refrain from commenting on rumors or speculation.”

In January, The Information had previously reported that Noname was seeking a new round of funding at a significantly lower valuation. In February, Israeli news outlet Calcalist claimed that Noname was in talks with several potential buyers, with Akamai being one of them.

The recent US Fed interest rate increase has caused many VC-backed companies that raised capital during the peak of the tech boom to experience a decline in their valuations. As a result, many of these companies are now exploring the possibility of being acquired while also searching for new sources of funding. This tactic, known as a dual-track process in the finance world, is being pursued in order to provide greater liquidity for later-stage investors who have been facing a stagnant IPO market for over a year. It’s clear that if companies don’t see a resurgence in successful IPOs, the venture industry will undoubtedly shift towards bargain hunting and increased M&A activity.

Avatar photo
Dylan Williams

Dylan Williams is a multimedia storyteller with a background in video production and graphic design. He has a knack for finding and sharing unique and visually striking stories from around the world.

Articles: 874


  1. Wow, superb blog layout! How long have you been running a blog for?
    you made blogging glance easy. The entire look of your website is excellent,
    let alone the content material! You can see similar here sklep internetowy

Leave a Reply

Your email address will not be published. Required fields are marked *