Linx Security
-88%
est. 2Y upside i
Rank
#3940
Sector
Cybersecurity
Est. Liquidity
~5Y
Data Quality
Data: LowLinx Security equity offers deeply negative expected returns over 2 years due to 10% growth and 26x ARR valuation.
Last updated: July 3, 2026
AI-native leadership and IPO window sustain multiple at 20x; projected revenue $12.5M yields exit ~$250M, but net of dilution and preference stack, common returns -33.5%.
Multiple converges to public comp mean of 8x as growth stalls; exit value ~$100M, well below entry, dilution compounds losses to -85.4%.
Multiple compresses to 4x due to competitive pressure, exit value <$50M, below $83M liquidation preference; common stock worthless.
Preference Stack Risk
severeFunding Intensity
79048%Total $83M liquidation preference equals 30% of current valuation, meaning common stock only has value above $83M exit.
Dilution Risk
highWith low growth and high burn, a flat or down round likely within 2 years, diluting common by 15-25%.
Secondary Liquidity
activeSecondary market exists at current valuation, providing some liquidity but likely overpriced relative to fundamentals.
Questions to Ask at the Interview
Strategic questions based on Linx Security's data — designed to show you've done your homework.
- 1
“How will Linx accelerate growth beyond 10% YoY given intense competition from Okta and CyberArk?”
- 2
“What is the gross margin trend and path to profitability with current burn rate?”
- 3
“How does the employee equity structure handle the $83M preference stack and potential down rounds?”
Community
Valuation Sentiment
Our model estimates -88% 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.