WillItSurvive
Cybersecurity companies · absorbed · United States

Skybox Security

Former vulnerability management and security posture vendor, now fully shut down since Feb 2025.

Little protection left
Assessed 21 July 2026 · Evidence as of 21 July 2026
Not much stands between this business and its pressures.
On the recordSince 21 July 2026 · Checkable from 2026 · Every call on the record Checkpoint: Israeli insolvency proceeding resolves creditor and employee claims
The call

Skybox Security shut down completely in February 2025 and its remains were absorbed by Tufin; the company itself no longer operates.

Skybox Security made software to help companies check if their security settings were correct and followed the rules. The company could not compete with bigger rivals like Tufin and CrowdStrike, which offered similar tools as part of larger security packages, and AI automation made Skybox's work easier for others to copy. The company ran out of money, laid off all 300 employees, filed for bankruptcy in February 2025, and sold its customers and technology to competitor Tufin; as of mid-2026, it has no operations, no staff, and no business value whatsoever.

Why
01
AI pressure: TufinAI (Tufin's AI-driven posture automation). Skybox no longer exists to be eaten; AI already runs the same rules-based correlation work through the buyer of its IP. Could AI do the core job? Yes, likely.
02
Bigger players: Tufin, CrowdStrike, SentinelOne, Microsoft. Tufin bought Skybox's IP, trademarks, and customer data in an asset sale after Skybox's total collapse in Feb 2025. Could a giant copy it? Yes, easily.
03
What protects it. None; the company has zero staff, zero revenue, and no assets left after full liquidation.
What would change this call
Tufin publishes customer migration counts or renewal figures from former Skybox accounts. Would confirm scale of customer transfer from Skybox to Tufin.
Israeli insolvency proceeding resolves creditor claims (J.P. Morgan, suppliers, landlords). Would show whether any residual assets or brand rights get sold again.
AlgoSec or FireMon announce dedicated 'Skybox migration' programs or win specific named former Skybox customers. Would show customer base splitting beyond just Tufin.
Key numbers
  • ~300 employees laid off same day (2025-02-24)
  • ~$26M secured debt to J.P. Morgan (2025-03)
  • ~$335M lifetime funding raised (2023-02)
Named risks
  • Company is fully defunct with zero revenue, zero employees, and no going concern value. Severity: high
  • Unresolved insolvency debts including unpaid salaries, rent, and supplier payments in Israel. Severity: high
  • Potential legal claims from laid-off employees over unpaid severance. Severity: medium
  • Any offer referencing current Skybox equity or employment should be treated as a fraud red flag. Severity: high
Rivals, as read in July 2026
RivalDirectionEvidence
Tufinlosing toAcquired Skybox's IP, trademarks, and customer data in asset sale, Feb 24, 2025
FireMongaining onMarketed directly to stranded Skybox customers in blog post, Apr 23, 2025
AlgoSecgaining onNamed as direct head-to-head competitor absorbing Skybox's customer base post-shutdown
CrowdStrike, SentinelOne, Microsoftgaining onCited by industry commentary as capturing share via integrated platform consolidation, 2025
Questions people ask
Is Skybox Security still in business in 2026?
No. Skybox Security ceased all operations on February 24, 2025, laid off its entire roughly 300-person workforce, and filed for insolvency in Israel. Select IP, trademarks, and customer data were sold to rival Tufin in an asset sale, not a company acquisition. The company has zero revenue and zero employees as of 2026.
Who acquired Skybox Security?
Tufin acquired select IP, trademarks, and customer information from Skybox in an asset sale on February 24, 2025. This was not an acquisition of the company itself; Tufin took no contracts or support obligations, and Skybox's domain now redirects to tufin.com.
Could AI replace Skybox Security's products?
The question is moot since Skybox no longer operates, but its rules-based firewall analysis and vulnerability correlation workflows are now automated by successor Tufin's AI product, TufinAI, which won RSAC 2025 Best of Show and drove Tufin's record 2025 results reported February 5, 2026.
Who is Skybox Security's biggest competitor?
Tufin, which acquired Skybox's assets in February 2025 and now markets itself as capturing stranded Skybox customers, along with AlgoSec and FireMon; FireMon actively promoted landing Skybox customers in an April 23, 2025 blog post.
How much funding did Skybox Security raise before shutting down?
Skybox raised roughly $335 million in lifetime funding, including a $150M round in 2017 led by CVC Capital Partners' Growth Fund with Pantheon Ventures, and a final $50M round in February 2023 from CVC, Pantheon, and J.P. Morgan.
Why did Skybox Security fail?
Insiders told reporters Skybox's SaaS transition failed to gain traction, leaving the company dependent on a shrinking existing customer base rather than new business between 2023 and 2025. It ultimately filed for insolvency in Israel with about $26M in secured debt to J.P. Morgan, shutting down February 24, 2025.
Timeline
  • 2026-02-05Tufin reports record 2025 results and NPS 71, driven partly by TufinAI and former Skybox customers
  • 2025-10-14CB Insights lists Skybox's company stage as Asset Sale, Assets Purchased
  • 2025-04-23FireMon publishes blog targeting stranded Skybox customers for migration
  • 2025-03-03Skybox insolvency filing details disclosed, including ~$26M secured debt to J.P. Morgan
  • 2025-02-24Skybox Security ceases operations, lays off entire ~300-person workforce, sells assets to Tufin
  • 2023-02Skybox closes $50M round from CVC, Pantheon, and J.P. Morgan, total funding ~$335M
  • 2017Skybox raises $150M led by CVC Capital Partners' Growth Fund with Pantheon Ventures
  • 2016Providence Equity acquires 75% of Skybox for $96M, valuing company at $120M
Revision history
21 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources