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It looks like Snap\u2019s (at least perceived) successful IPO has officially opened the window: Following Yext officially filing for an IPO this afternoon<\/a>, identity management software company Okta just dropped its official filing for an IPO.<\/p>\n After much hand-wringing about whether or not 2017 would avoid last year\u2019s fate of an IPO drought, we\u2019ve seen three IPOs all within the span of about a month and a half. Okta, like Yext, is looking\u00a0to raise up to $100 million as of the Securities and Exchange Commission filing today. With Cisco snapping up AppDynamics right before it went public, investors and companies were waiting to see if there was actually some appetite for IPOs \u2014 which, apparently, there is plenty.<\/p>\n This also looks like another big potential win for Sequoia Capital, which owns a whopping 21.2 percent of the company. Andreessen-Horowitz, Khosla Ventures and Greylock Partners also have major ownership stakes in the company. It\u2019s not at the scale of a massive IPO like Snap, but it\u2019s the sum of all these smaller enterprise IPOs that can help define the success stories for various firms.<\/p>\n Okta specializes in identity management software, though it\u2019s been expanding into security, mobile device management and two-factor authentication. This is important for larger corporations that start to have sprawling sets of applications across multiple divisions. Corporations need to ensure that all these services don\u2019t serve as entry points for potential breaches and make it easier for employees to manage their access to a wide array of tools that they might need to do their jobs. One example would be reducing the number of password resets, which can be a huge headache for IT departments.<\/p>\n As for risk factors, there are two big ones that stand out here: reliance on Amazon\u2019s web services (like a whole host of other services), and a reliance on open source technology. The Amazon risk factor\u2019s an easy one to unpack \u2014 a minor screwup<\/a> can end up bringing a whole segment of the internet down<\/a>. Corporations don\u2019t quite have the luxury of having their services just drop\u00a0off the grid and not operating for a while.<\/p>\n \u201cA prolonged AWS service disruption affecting our platform for any of the foregoing reasons could damage our reputation with current and potential customers, expose us to liability, cause us to lose customers or otherwise harm our business,\u201d the company said in its S-1 filing. \u201cWe may also incur significant costs for using alternative equipment or taking other actions in preparation for, or in reaction to, events that damage the AWS services we use.\u201d<\/p>\n On the open source front, the company explains that it might be on the hook for litigation if the ownership of the software that it\u2019s using in its products is questioned. This is just one of the many risks that a company that takes on open source technology \u2014 which is increasingly common \u2014 acquires.<\/p>\n \u201cHowever, the terms of many open source licenses have not been interpreted by U.S. courts, and there is a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to commercialize our products,\u201d the company said. \u201cAs a result, we could be subject to lawsuits by parties claiming ownership of what we believe to be open source software. Litigation could be costly for us to defend, have a negative effect on our results of operations and financial condition or require us to devote additional research and development resources to change our products.\u201d<\/p>\n Snap\u2019s debut as a publicly traded company started with a bang, with the stock price immediately spiking 40 percent from its IPO price\u00a0on its first day<\/a>. Since then, reality has set in and Snap\u2019s seen a string of declines that\u2019s cut its valuation to around $24.5 billion (from about $30 billion on day one). This was pretty much to be expected, but Snap is still hovering well above its IPO price, so it looks like Wall Street is feeling pretty good about IPOs this year.<\/p>\n The company\u00a0has been rumored to be an IPO candidate for a while. From what we were hearing, we\u2019d expected this one to happen last year, but 2016 was just not a good year for IPOs. In September 2015, Okta raised $75 million at a nearly $1.2 billion valuation,<\/a>\u00a0and was expected to go public in 12-18 months.<\/p>\n <\/p>\n