Feroot Security

feroot.com →

+109%

est. 2Y upside i

CybersecuritySeries A

AI-powered Compliance Platform for PCI 4, CCPA, HIPAA, CIPA, 50+ laws

Rank

#451

Sector

Cybersecurity

Est. Liquidity

~5Y

Data Quality

Data: Low

Feroot presents a high-risk, high-reward equity opportunity: the 382% YoY revenue growth, enterprise customer logos, and True Ventures conviction are genuine signals of a company that has found real product-market fit after an AI pivot, with a massive and fast-growing TAM.

Last updated: May 14, 2026

Bull (35%)+300%

Feroot sustains 150%+ YoY growth through 2027, scaling ARR from $5M to $30-40M on the strength of DXComply, HealthData Shield AI, and PaymentGuard AI adoption across regulated industries; a strategic acquisition by a major cybersecurity or compliance vendor at 8-10x ARR implies a $240-400M exit, delivering approximately 300% upside to common shareholders after clearing the $25M preference stack.

Base (35%)+75%

Growth moderates to 60-80% YoY as the initial AI-pivot surge normalizes, reaching $15-18M ARR by 2027 and supporting a Series B at a $120-150M valuation; common shareholders realize roughly 75% upside after liquidation preferences, assuming a subsequent exit or secondary tender at 1.5-2x the Series B post-money within the 5-year horizon.

Bear (30%)-75%

Growth decelerates sharply as Cloudflare and large CDN incumbents bundle client-side JavaScript monitoring into existing enterprise contracts at no incremental cost, stalling Feroot ARR near $7-8M and forcing a down or flat round; with $25M in liquidation preferences absorbing most proceeds of a sub-$50M exit, common shareholders lose 70-80% of their grant value.

Est. time to liquidity~5.0 years

Preference Stack Risk

severe

Funding Intensity

3570%

With $25M in total funding against an estimated ~$70M post-Series A valuation, liquidation preferences consume approximately 36% of any exit proceeds before common shareholders receive a dollar—in a $50M exit, common gets roughly $25M split across all common shares.

Dilution Risk

high

As a freshly minted Series A, Feroot will likely require 2-3 additional rounds before exit, each issuing 15-25% new equity; employees should model 40-60% cumulative dilution to their ownership percentage before any liquidity event.

Secondary Liquidity

none

No secondary market activity is evident for a 53-person Series A company backed by a single lead investor; employees should assume equity is fully illiquid for a minimum of 4-6 years.

Questions to Ask at the Interview

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

1
“What is the exact post-money valuation from the November 2025 Series A, and what ARR run-rate, net revenue retention, and gross margin metrics anchored True Ventures' investment thesis at that price?”
2
“How does Feroot's product roadmap create switching costs or technical moats that prevent Cloudflare or large CDN incumbents from commoditizing client-side JavaScript security as a bundled zero-marginal-cost feature for existing enterprise customers?”
3
“What is the option strike price, vesting schedule, cliff period, and post-termination exercise window—and has the company run any secondary tender offers, or does leadership have a defined plan to provide employee liquidity before a full exit event?”

Community

Valuation Sentiment

Our model estimates +109% 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.