Legit Security
+22%
est. 2Y upside i
Rank
#2831
Sector
Cybersecurity
Est. Liquidity
~5Y
Data Quality
Data: LowLegit Security is a credible platform in a real market but carries higher equity risk for a 2-year window.
Last updated: May 5, 2026
ASPM market consolidation triggers an acquisition by a major platform player (Palo Alto Networks, CrowdStrike, or Wiz) at $500-600M, or a Series C closes at ~$375-400M within the 2-year window; common equity appreciates ~150% after clearing $77M in liquidation preferences against an estimated $200M post-Series B baseline. Three consecutive Fortune Cyber 60 appearances and marquee logos (Google, NYSE) accelerate enterprise pipeline and validate premium exit multiples.
Company raises a Series C at ~$250-280M over the next 2-3 years, reflecting steady but measured traction in a crowded ASPM field; common equity gains ~30% on paper but no liquidity event materializes within the 2-year horizon. Unknown revenue and growth metrics, combined with medium incumbent pressure from Snyk and Wiz expanding into posture management, constrain re-rating potential.
Intensifying competition from well-capitalized incumbents slows bookings growth, making Series C fundraising difficult or forcing a flat/down round at sub-$150M; common equity contracts ~55% against the $200M baseline. With $77M in preferences sitting ahead of common, any exit below $150M returns near-zero to employees holding common stock.
Preference Stack Risk
severeFunding Intensity
39%Total liquidation preferences of $77M represent approximately 38.5% of the estimated ~$200M post-Series B valuation, meaning preferred shareholders absorb the first $77-100M+ of any exit before common stock participates.
Dilution Risk
highA Series C (likely required within 12-24 months) will add an estimated 20-25% dilution on top of cumulative dilution already incurred across seed, Series A, and Series B rounds.
Secondary Liquidity
noneNo secondary market program or tender offer has been disclosed; at 94 employees and Series B stage, employees should assume complete illiquidity until a liquidity event or structured secondary, likely 4-6 years out.
Questions to Ask at the Interview
Strategic questions based on Legit Security's data — designed to show you've done your homework.
- 1
“When Wiz, Snyk, and Palo Alto pitch ASPM to the same prospects — what does Legit win on in a head-to-head bake-off, and can you share a recent competitive win story?”
- 2
“What is the current ARR, net revenue retention rate, and burn multiple — and how much runway does the $40M Series B provide at current spend?”
- 3
“What is today's 409A valuation relative to the Series B preferred price, and has the board discussed a secondary tender offer or liquidity program as the company approaches year 6?”
Community
Valuation Sentiment
Our model estimates +22% 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.