Snyk was worth $8.5 billion. The price of its employees' stock has collapsed.
Executive Take
Employees holding equity at high-growth startups can lose most of that value even without a public collapse, since private share prices move quietly. Boards need to reassess AI competitive threats before they show up in valuation, not after.
Executive Summary
Cybersecurity startup Snyk, valued at $8.5 billion in 2021, has seen its employee share price fall to $1.16 as of late August, down from over $10 at peak and about $3 in summer 2025. Snyk lost $188 million on $278 million revenue in 2024, cut jobs twice since 2025, and named an interim CEO after Peter McKay stepped down in February.
Why It Matters
Cybersecurity and tech leaders should note that AI tools like Claude are now replacing point-solution vendors such as Snyk for code scanning, squeezing pricing power. HR leaders overseeing equity compensation packages need to reset expectations with staff holding shares in similarly exposed startups.
Bizquad Perspective
The real story isn't Snyk's decline, it's that AI labs are becoming direct substitutes for entire categories of enterprise software, not just productivity tools inside them.