March 7 (Reuters) - Snyk Ltd, a cybersecurity start-up which was valued at $8.5 billion in a funding round last year, has hired banks including Morgan Stanley and Goldman Sachs Group Inc in preparations for a U.S. initial public offering (IPO), according to people familiar with the matter.
The timing of the IPO is uncertain given the market volatility fueled by Russia's attack on Ukraine, the sources said. Snyk aspires to double its valuation from its last funding round, the sources added.
Snyk and Goldman Sachs did not immediately respond to requests for comment. Morgan Stanley declined to comment.
Synk's technology is used by developers to add security components to their new software products. Cybersecurity witnessed a once-in-a-generation boom during the pandemic, as companies ramped up spending on security services for remote working.
Dealmaking in the sector, as a result, has also witnessed a big jump. Last year, McAfee Corp struck a $14 billion deal to be taken private. Earlier this year, Reuters reported that buyout firm KKR & Co Inc is exploring a sale or an initial public offering for Optiv Security Inc, a U.S. cybersecurity solutions distributor and consultant it controls at a valuation of more than $3 billion, including debt.
The U.S. IPO market has frozen in recent weeks as investor concerns over the war in Ukraine and raging inflation weigh on stocks.
Synk's valuation has nearly doubled in the past year -- it was valued at $4.7 billion in a financing round early last year. Its last funding round in September was led by Sands Capital Ventures and Tiger Global Management. To date, it has raised over $1 billion in venture financing from investors.
Bloomberg News reported in December that Snyk was making preparations for an IPO in 2022. (Reporting by Anirban Sen in Bengaluru and Krystal Hu in New York, additional reporting by Echo Wang; Editing by Chizu Nomiyama)