-78%

est. 2Y upside i

CybersecurityDevOps & InfraSeries A

Rank

#3233

Sector

Cybersecurity, Developer Tools

Est. Liquidity

~4Y

Data Quality

Data: High

Akto presents a risky equity opportunity with an expected upside of 21% over a two-year horizon, primarily due to a severe preference stack ($13M in funding on an assumed $30M valuation) and high incumbent threat.

Last updated: March 10, 2026

Bull (10%)+300%

Akto successfully establishes itself as a leader in the nascent Agentic AI Security market, leveraging its early-mover advantage and plug-n-play solution. Revenue grows aggressively to $10M-$15M within 2 years, justifying a 10x-15x multiple for a $100M-$225M valuation, resulting in a 300% upside from the current assumed valuation.

Base (45%)+50%

Akto holds its position in the API security market, growing revenue to $5M-$7M in 2 years, but faces intense competition. The valuation multiple compresses slightly due to competitive pressures, leading to a $45M valuation, representing a 50% upside.

Bear (45%)-70%

Dominant incumbents like Okta and larger cybersecurity players quickly commoditize the AI agent security market, and Akto's growth stalls. A down round values the company at $9M, severely impacting common stock value due to the $13M liquidation preference.

Est. time to liquidity~4.0 years

Preference Stack Risk

severe

Investors hold $13M in liquidation preferences. In an exit at or below $13M, common stock holders would receive nothing. At an exit of $30M, $13M goes to preferred shareholders first, leaving $17M for common.

Dilution Risk

high

As an early-stage company, Akto will likely require additional funding rounds, which will dilute existing equity holders.

Secondary Liquidity

none

There are no active secondary markets or tender offers for Akto's shares at this early stage.

Questions to Ask at the Interview

Strategic questions based on Akto's data — designed to show you've done your homework.

  • 1

    “Given Okta's recent move into Agentic AI Security, how does Akto plan to differentiate and compete against such a dominant incumbent with extensive resources and existing customer relationships?”

  • 2

    “With $2M in revenue and $13M in total funding, what is the company's current burn rate and runway, and what are the key milestones for achieving profitability or the next funding round?”

  • 3

    “Considering the $13M in liquidation preferences, what is the company's strategy to ensure meaningful returns for common stock holders in potential exit scenarios?”

Community

Valuation Sentiment

Our model estimates -78% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.