Feroot Security

feroot.com

-58%

est. 2Y upside i

CybersecuritySeries A

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

Rank

#351

Sector

Cybersecurity

Est. Liquidity

~4Y

Data Quality

Data: High

Feroot Security presents a strong upside opportunity driven by its exceptional 300% YoY revenue growth and proprietary AI in a large, regulation-driven market.

Last updated: March 10, 2026

Bull (35%)+400%

Feroot becomes a market leader in client-side security and compliance, leveraging its proprietary AI agents and regulatory influence to expand into new enterprise verticals. This drives revenue to $18M+ ARR in 2 years, justifying an 18-20x revenue multiple and a $350M+ valuation.

Base (25%)+71%

Feroot continues strong growth, reaching $12M ARR in 2 years, but faces increased competition from both specialized players and broader security vendors. Valuation grows to $120M, a 71% increase from current, reflecting solid execution but a more normalized market multiple.

Bear (40%)-75%

Dominant incumbents like Cloudflare or Microsoft integrate similar AI-driven client-side security features, commoditizing Feroot's offering. Growth stalls, and a down round values the company at $17.5M, resulting in a significant loss for common shareholders due to the $25M liquidation preferences.

Est. time to liquidity~4.0 years

Preference Stack Risk

severe

Investors hold $25M in liquidation preferences, meaning common shareholders would only see returns after this amount is paid out in an exit.

Dilution Risk

high

As an early-stage company, Feroot will likely raise additional funding rounds, leading to further dilution for existing common shareholders.

Secondary Liquidity

none

As a Series A company, there is no active secondary market for Feroot's shares.

Questions to Ask at the Interview

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

  • 1

    Given Cloudflare's strong presence in application security and its listing as a top alternative, how does Feroot plan to maintain its competitive edge and differentiate its AI-powered client-side security and compliance offerings against such a dominant incumbent?

  • 2

    With 300% YoY revenue growth and a Series A round, what are the key strategic priorities for scaling the go-to-market team and product development over the next 12-24 months to sustain this trajectory and expand into new enterprise clients?

  • 3

    Considering the $25M in total funding and the Series A stage, how is the company thinking about the timeline and potential pathways for a liquidity event, and what mechanisms are in place to ensure common shareholders realize value from their equity?

Community

Valuation Sentiment

Our model estimates -58% 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.