Material Security

material.security

-69%

est. 2Y upside i

CybersecuritySeries C

Email security platform protecting sensitive data in mailboxes

Rank

#3527

Sector

Cybersecurity

Est. Liquidity

~4Y

Data Quality

Data: Low

The equity at the current secondary valuation of $270M offers limited upside given 11.6% growth and high competition.

Last updated: July 3, 2026

Bull (10%)-3%

Multiple holds at 14x due to IPO window and category leadership, but dilution dilutes gains, resulting in slight loss.

Base (55%)-62%

Multiple compresses to 7x as growth slows, leading to significant loss after dilution.

Bear (35%)-100%

Multiple collapses to 3x due to competitive pressure, exit value below preference stack, common stock worthless.

Est. time to liquidity~4.0 years
Adjusted for competitive dynamics: -74% (raw: -69%, adjustment: -5%)

Preference Stack Risk

severe

Funding Intensity

61%

Total funding $166M equals 61% of entry valuation, giving preferred shareholders a large claim.

Dilution Risk

high

With low growth and likely cash burn, a future round could dilute existing shareholders by 20% or more.

Secondary Liquidity

limited

Secondary market activity implies some liquidity, but volume may be limited.

Questions to Ask at the Interview

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

  • 1

    How will Material differentiate from Microsoft's native security features?

  • 2

    What is the path to profitability with only $18.3M ARR?

  • 3

    Given the down round, what is the board's strategy for increasing valuation?

Community

Valuation Sentiment

Our model estimates -69% upside. What do you think?

Anonymous. Do not share material non-public information.


Community Discussion

Comments are reviewed before they appear publicly.

0/2000

Loading comments...

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