Will the unicorn's $1B valuation hold up?
Cloudflare, the SF-based unicorn and CDN was impacted by another security issue last week when it was hit by the Cloudbleed bug, which may have leaked sensitive client data.
The company has said they’ll IPO in 2017, but there was some debate on our team as to whether the company’s $1B valuation will hold up.
- Competitive intensity increasing – There is no lack of other emerging CDN players. Yottaa and Zenedge are two competing content delivery networks with high Mosaic scores (880 and 850 respectively), and here is a list of many other startups in the CDN space.
- Exits haven’t been large – While there have been exits in the CDN space, they’ve not been large – or at least not unicorn large. Among the larger exits in the space was Dyn’s acquisition by Oracle for $600M in Nov 2016, the $635M acquisition of OpenDNS by Cisco and the $350M acquisition of EdgeCast Networks by Verizon. The billion dollar exit mark has proven elusive.
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