Snyk, an Israeli cybersecurity startup in the field of cloud native application security, is the second Israel Startup Nation firm on Monday alone to reveal that it is forced to make cutback in its workforce. The company is laying off 198 of its employees, or about 14% of its workforce. Synk previously let go of another 30 of its employees in June.
Also on Monday OrCam Technologies Ltd, an Israeli medtech startup that offers new technology for the blind, was reported to be laying off 62 employees, or 16% of its total workforce.
It was just a little over a year ago that Snyk hit an $8.7 billion valuation. This happened after the company raised $300 million in a Series E financing round held in September 2021. And then, in December of that year, the firm revealed plans to go public with the expectation of getting a similar valuation from its IPO.
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But the IPO never materialized and now the company is suffering in the same way as everyone else from the drying up of capital for new investments.
Cybereason, an Israeli cybersecurity startup and a unicorn, is another Israeli firm that was forced to give up on its IPO plans. That company is now looking for a new buyer.
This is all caused by the ongoing war in Ukraine, which has led to high oil prices and international sanctions on Russia and its oligarchs to punish the country for the invasion and occupation of Ukraine. This has caused uncertainty among investors and a situation where people are holding onto their money right now and not investing it.
Snyk provides cloud native application security (CNAS) solutions which enable modern applications to be built securely, empowering developers to own and build security for the whole application, from code and open source to containers and cloud infrastructure.
Snyk says that its SaaS platform can help developers find their vulnerabilities and license violations in their open source codebases, containers, and Kubernetes applications. By connecting their code repository, Snyk customers gain access to a giant vulnerability database, which enables Snyk to serve a description of the problem, point to where the flaw in the code lies, and even suggests a fix.