When Asheem Chandna drove as much as Rubrik’s workplace in Palo Alto on a Friday night time in early 2015, he was trying ahead to studying what the younger firm that had but to construct its product would present him. The Greylock accomplice wasn’t dissatisfied.
The corporate’s CEO, Bipul Sinha, drew Rubrik’s plan to revamp the information administration and restoration market on a whiteboard. “The previous versus new structure he offered was very compelling,” Chandna mentioned. “Based mostly on my data of the sector, I knew it could possibly be constructed into a big enterprise.”
That was a prescient name. On Thursday, 9 years after that assembly, Rubric started its life as a publicly traded firm with a market cap of over $6 billion. Greylock holds a 13% stake, in accordance with the newest SEC filings. By the shut of market Friday, with shares priced at $38, these almost 19.9 million shares had been value over $756 million.
However Chandna says it was way more than Rubrik’s want to tackle the arcane knowledge restoration market that motivated him to steer Rubrik’s $40 million Sequence B in Could 2015. (The Sequence B spherical offered for $2.45/share, adjusting for splits, in accordance with these SEC paperwork. Whereas Greylock additionally participated in later rounds at greater costs, Chandra’s returns on this one are hefty.)
“The longer I do what I do, the extra I basically consider that enterprise is a individuals enterprise,” mentioned Chandna, who has been an investor for over 20 years and has an enviable observe report of profitable exits. He has helped incubate Palo Alto Networks in Greylock’s workplaces and was on the almost $100 billion-worth firm’s board till final yr. Chandna was additionally an early investor in AppDynamics, Sumo Logic and Arista Networks.
Chandna seems for people who find themselves not solely motivated and impressive, however are additionally self-aware of their weaknesses, and might recruit individuals who can get issues performed in areas that aren’t the founder’s sturdy fits.
One other important ingredient for a founder is grit. “In the event you had expertise that was ample, however barely inferior to my expertise, however you had been very self-aware and protracted, you’ll beat me,” he mentioned.
That’s what he noticed in Sinha. Rubrik’s founder had a lifelong dream of beginning an organization. When he based the information administration and restoration startup in 2013, he couldn’t discover sturdy engineers who wished to come back work there, Chandra recalled. The enterprise he was making an attempt to construct was inherently not horny on the time.
Regardless of having been an investor with Lightspeed for 4 years earlier than launching Rubrik, recruiting expertise turned out to be an enormous problem for Sinha. However he didn’t hand over. He pinged engineers on LinkedIn after which invited them for espresso blocks away from the place they labored.
“Startup journeys are very onerous, even for probably the most profitable firms,” Chandna mentioned. “I would like individuals who gained’t take ‘no’ for a solution.”
Maybe it was Sinha’s grit and ambition that compelled him to take his firm public regardless of the lukewarm IPO setting.
“Rubric has just below $800 million in annualized recurring income,” Chandna mentioned, “That’s bigger than most firms that went public within the final a few years. I believe they only wished to get on with it.”
Chandna declined to say if he expects different Greylock portfolio firms to comply with Rubrik’s lead however added emphatically that the agency’s best-performing late-stage companies are Irregular Safety, Cato Networks, Discord, Figma and Lyra Well being.
We will likely be following their destiny carefully.
