Snyk was worth $8.5 billion. The price of its employees' stock has collapsed.

Snyk was 1 of cybersecurity's brightest startup stars, worthy $8.5 cardinal astatine the tallness of the package boom. Now, the worth of the banal it gives labor has fallen to a fraction of that, underscoring really dramatically fortunes person shifted for galore software companies successful the AI era.

Snyk, which is headquartered successful Boston, became best-known for trading a vulnerability scanner that quickly finds bugs successful code. It was weighted astatine $8.5 cardinal successful a 2021 backing information and astatine $7.4 cardinal successful a 2022 backing round. Snyk has raised much than $1 cardinal from investors since its founding successful 2015.

People pinch Snyk equity person been watching the worth of their shares descent complete the past fewer years, 2 erstwhile labor told Business Insider.

One recalled that astir Snyk's highest valuation, their shares were worthy complete $10. By the summertime of 2025, that had declined to astir $3, the different erstwhile worker said. That fig is now down to $1.16 per stock arsenic of precocious August, according to an soul document.

Snyk said it doesn't remark connected worker stock valuations and declined to supply a valuation for Snyk astatine this time. Snyk said that 2026 has "brought accelerating momentum" and added that it has launched 3 caller solutions complete the past fewer months.

Dramatic valuation drops person deed immoderate software-as-a-service (SaaS) companies this twelvemonth owed to the emergence of powerful caller AI systems, said Dan Morgan, a elder spot portfolio head astatine Synovus Trust. Morgan added that startups are peculiarly susceptible compared to larger, well-established firms.

"I would opportunity it's decidedly a trend, not an exception," he said.

Software startup Airtable, which was erstwhile weighted astatine complete $11 cardinal successful 2021, entered into an statement to beryllium sold for $1.3 cardinal earlier this month. Another SaaS company, Domo, was erstwhile worth $2.8 cardinal and has a marketplace capitalization of little than $200 million.

Snyk faces title and a activity shake-up

Snyk has been facing rising title from AI labs for illustration Anthropic and cybersecurity rivals for illustration Wiz, which Google bought successful March. Coinbase, for example, antecedently told Business Insider that it had utilized Anthropic's Claude to scan its codebase for bugs.

Snyk was increasing steadily, though it remained unprofitable by the extremity of 2024, losing $188 cardinal connected $278 cardinal successful revenue, according to UK authorities records.

In December 2024, then-CEO Peter McKay told TechCrunch the institution was "very adjacent to break-even" and had plans for an first nationalist offering, though it wasn't rushing to do so.

Snyk has gone done astatine slightest 2 rounds of occupation cuts since 2025, according to erstwhile employees' LinkedIn posts. In June, Snyk said it was "flattening leadership" and "simplifying our structure" to move faster.

After astir 7 years arsenic CEO, McKay announced successful February he would measurement down, saying the institution needed a caller leader pinch "deep roots successful merchandise invention and AI."

McKay now useful arsenic a "value accelerator advisor" for Goldman Sachs and arsenic an advisor astatine Snyk. Snyk's main financial officer, Kenneth MacAskill, stepped successful arsenic interim CEO.