Prior to the potential acquisition, Noname Security had raised $220 million in venture capital, including a round of $135 million on a $1 billion valuation in December 2021. However, the company's valuation has dropped by half in two and half years, possibly due to a decrease in investor activity in startups and reports that Noname Security was trying to raise money on a down round, indicating potential capital issues.
Key takeaways:
- Akamai Technologies Inc. is reportedly in advanced talks to acquire Israeli startup Noname Security for $500 million, half of the company’s valuation from its last venture capital round.
- Noname Security, founded in 2020, offers a security platform that allows enterprises to secure managed and unmanaged application programming interfaces.
- Noname Security had raised $220 million in venture capital, including a round of $135 million on a $1 billion valuation in December 2021.
- The potential deal is not final and could change or not happen at all, and there are speculations that Noname Security might be running out of money.