British Cybersecurity Firm Darktrace Goes Public

The complete world is accommodated with technological advancements. Everything is digitized in this tech-oriented world. Considering this swift evolution in cutting-edge technology, there is a dire need for the enhancement of cybersecurity protocols as businesses are struggling and are facing cybersecurity solutions. 95% of the cybersecurity breaches encountered due to human error. Unfortunately, We are witnessing an extraordinary level of vulnerability. During the first six months of the pandemic year, 36 billion user records were disclosed to data violation. 

This evolution in cyberattacks leads us to the fact that there is a dire need for businesses and financial infrastructures to acquire appropriate measures for the enhancement of cybersecurity. In addition to that, businesses are more prone to the acquisition of cloud computing to combat tarnished reputation. 

“On Monday, Darktrace planned its initial public offerings on London’s stock exchange’s main market". Chief executive Poppy Gustafsson claimed that "it would be a historic day for the United Kingdom’s flourishing technological sector.”

But, What is Darktrace? 

The very first company that utilizes artificial intelligence algorithms for the enhancement of cybersecurity protocols, Darktrace, came into being in 2013. Darktrace is capable of converting an organization’s abilities to prevent its most critical assets from cyber attacks with its immune system platform. With 1500+ employees, the headquarter of Darktrace is situated in Cambridge, UK. 

The company offers complete coverage all across the globe in SaaS applications as well as cloud services which includes, Slack, Okta, Microsoft 365, and much more. Darktrace provides seamless integration with a wide range of security tools, from firewalls to numerous SOARs and SIEMs for identity theft prevention. The technology works by learning life patterns for every individual and device in an organization. It efficiently detects subtle warnings that indicate cyber threats.  

Darktrace Plans First Major London IPO

Despite the disastrous debut of Deliveroo last month, Darktrace which is one of the most well-known cybersecurity companies spread its wings all across London in a vote of confidence for exchange. 

According to the person who is close to the deal, the IPO could value Darktrace up to £3 billion. It will be the very first big test of London investors’ craving for evolving technology after Deliveroo faced the downfall by 26% on its very first day of trading last month, resulting in fears that more European evolving companies would look at the list in Amsterdam or in New York. 

Darktrace utilizes cutting-edge technology and evolving artificial intelligence as well as machine learning algorithms for the detection and appropriate response of cyber threats to 4700+ customers. In its latest financial year, it has generated revenue of approximately $200 million, up-pacing by 45% with every passing year. It forecasts that it is chasing the market worth $40 billion per year. 

Poppy Gustafsson, Chief Executive of Darktrace claimed that 

“Our artificial intelligence was the first one in the market developed by our very talented software engineering team in Cambridge that was deployed at enterprise scale. At the present age, Darktrace is responsible to provide privacy measures and enhanced security protocols to over 4700 organizations worldwide from the most sophisticated cyber attacks and cyber threats.”

According to Gustafsson, London was a very logical choice given its Cambridge headquarters and UK’s ancestry in artificial intelligence.  She added that listing in the United States or combining it with a blank cheque company was not actually a consideration. 

Mike Lynch, who has vigorously denied any wrongdoings over the autonomous deal, also invested in Darktrace’s first round of funding back in 2013 through his company Invoke Capital.  In 2018, Lynch stepped down as a Darktrace director. Invoke is now represented on the board by the cofounder of investment company Vanessa Colomar, who is another former Autonomy executive.

Though regulatory concerns affected Deliveroo’s listing over its gig economy model as well as dual-class share structure, few of the London investors also remained unconvinced of its long-term prospects of profitability. Darktrace is a very different company according to Gustafsson and the main difference is dark trace is a fundamental technology company with predictable recurring revenues and high gross margins. 

An Inevitable Conclusion

There would be no wrong in saying that the digital battlefield is swiftly converting to a war of artificial intelligence algorithms.  It is almost impracticable for humans to stop evolving cyberattacks. AI-powered cyberattacks are imitating our online patterns and are impersonating people. Autonomous cyberattacks might have defined targets, intellectual properties, or attaining advantage of a suitable opportunity for economic gain. 

Cybersecurity trends are progressing by leaps and bounds simultaneously with cyberattacks.  The incorporation of cybersecurity measures and on-premises solutions for the enhancement of cybersecurity for seamless customer identity verification plays a crucial role to combat illicit money transfers and fraudulent activities. Hence accommodation of cybersecurity firms assists in the prevention of illicit money transfers, deceptions, and other possible fraudulent activities.