---
title: "Lightspeed Venture Partners discloses its $1.2 billion Netskope stake with the stock above its average target"
description: "Netskope closed Friday above the average analyst target on the day Morgan Stanley moved to the sidelines, and a filing with the SEC put Lightspeed Venture Partners' whole position on the record: 56.5 million shares, all in passive form. Anyone buying the stock into its December 2 results now knows exactly how much could come to market."
publisher: "The Inference"
section: "Security"
published: 2026-11-14T20:10:18.796Z
modified: 2026-11-14T20:10:18.796Z
canonical: https://theinference.org/article/lightspeed-venture-partners-discloses-its-1-2-billion-netskope-stake-with-the-stock-above-its-average-target
language: en
keywords: "Netskope, Lightspeed Venture Partners, Cybersecurity, SEC Filings, Analyst Ratings"
---

# Lightspeed Venture Partners discloses its $1.2 billion Netskope stake with the stock above its average target

> Netskope closed Friday above the average analyst target on the day Morgan Stanley moved to the sidelines, and a filing with the SEC put Lightspeed Venture Partners' whole position on the record: 56.5 million shares, all in passive form. Anyone buying the stock into its December 2 results now knows exactly how much could come to market.

Friday's [Netskope](https://theinference.org/markets/companies/netskope) story was [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley)'s downgrade. [1] The document that reached the SEC on Friday, November 13 matters more to anyone holding the stock: a [Schedule 13G/A](https://www.sec.gov/Archives/edgar/data/2063196/000153906126000018/0001539061-26-000018-index.htm) shows [Lightspeed](https://theinference.org/markets/companies/lightspeed) Venture Partners, the venture firm that [led the cloud-security company's 2017 funding round](https://techcrunch.com/2017/06/06/cloud-security-broker-netskope-raises-100m-more-led-by-lightspeed-and-accel/), still holding 56.5 million shares, every one of them in passive form. [2][4] At Friday's close the block is worth about $1.2 billion. [2][3] The largest other reported institutional stake, the asset manager First Trust Advisors' 10.7 million shares, is under a fifth of it. [1]

## One block, twenty entities, no one in sole control

The 13G/A is the form large holders file when they claim no interest in control, and it measures Lightspeed's position as of September 30: 13.8% of all Netskope common stock, spread across seven vehicles filed by twenty related entities. [2] All voting and disposal power is shared, none is sole, and the entities expressly disclaim acting as a group. [2] Even a filing that claims no control tells the market exactly how many shares could come to it.

*Chart: **Lightspeed's Netskope block sits in six funds, the largest 15.6 million shares** Bar chart of Netskope Class B shares held by six Lightspeed funds, from 15.6 million at Lightspeed SPV II to 2.7 million at Lightspeed Opportunity*

*Class B common stock held as of September 30, 2026, by the six Lightspeed funds with material positions, millions of shares; a 500-share scout fund is excluded. Source: SEC Schedule 13G/A, November 13, 2026. [2]*

## The pipeline into sellable stock is already built

The stake is Class B, which converts into the Class A shares that trade on Nasdaq. [2][3] The filing's arithmetic was adjusted for a Lightspeed conversion on September 10, and the next day one of its funds sold 10,621 shares at $14.90, about $158,000, in a transaction disclosed to the SEC. [1][2] That sale is the first working proof of the pipeline: convert, then sell, one day apart, at a price the stock has since left behind.

## The price has outrun the analysts who raised it

Netskope closed Friday at $21.75, above [the $20.82 average target of the 19 analysts covering it](https://www.marketscreener.com/news/netskope-shares-fall-after-morgan-stanley-downgrade-ce785eded98bf620), and Morgan Stanley cut the stock to equal-weight anyway. [3][1] The bank raised its target from $16 to $24 as it cut the rating, and said the valuation already reflects an improvement in sales while competition heats up in Secure Access Service Edge, the converged security-and-networking market Netskope sells into. [5]

*Chart: **The close beats the Street's average target and sits below Morgan Stanley's new $24** Column chart comparing Netskope's $21.75 close with its $20.82 average analyst target, Morgan Stanley's prior $16 target and its new $24 target*

*Netskope's closing price on November 13, 2026, the average target of the 19 analysts covering it, and Morgan Stanley's price target before and after it cut the stock to equal-weight; dollars per share. Sources: MarketBeat, MarketScreener and Seeking Alpha, November 13, 2026. [1][3][5]*

The business under that price is still delivering: the July quarter beat guidance on every metric, with [revenue up 29% from a year earlier](https://www.morningstar.com/news/globe-newswire/9820479/netskope-announces-strong-second-quarter-fiscal-2027-financial-results). [6] In September the same bank called Netskope "positioned to capture AI opportunity" after that quarter's upside, and First Trust raised its stake by 153% in the third quarter. [3][1]

*Chart: **Revenue has risen every quarter, 29% in the July quarter** Line chart of Netskope quarterly revenue rising from $138.5 million in the quarter ended October 2024 to $220.5 million in the quarter ended July 2026*

*Netskope revenue by fiscal quarter, millions of dollars; fiscal years end January 31, so Q2 '26 is the quarter ended July 31, 2026. Source: Netskope quarterly figures from its SEC filings, retrieved November 14, 2026. [8]*

We [flagged on October 30](https://theinference.org/article/netskope-trades-30-above-analyst-targets-on-ai-agent-controls-that-have-no-published-adoption-yet) that the premium rests on AI agent-security controls with no published adoption numbers; the company news since has been an earnings date and a sales hire. [3][7]

## Nothing in the filing requires Lightspeed to hold

The filing announces no sale. It maps capacity: every Lightspeed share sits one conversion away from a market paying above the Street's own average. [2][3] The form rules out influence over the company; it says nothing about selling. The next signal is a Form 4, the trade notice that surfaced the September sale, and the first test of both the downgrade and this block is fiscal third-quarter results on December 2. [1][3]

Anyone buying above that consensus into December 2 is in the risk camp; this filing is their supply map.

## Takeaway

Lightspeed's 56.5 million Netskope shares, 13.8% of the company, convert into the class that trades one step from a market paying more than the Street's average target.

## Sources

1. [MarketBeat, "Netskope (NASDAQ:NTSK) Stock Rating Lowered by Morgan Stanley," 13 November 2026](https://www.marketbeat.com/instant-alerts/analyst-netskope-nasdaq-ntsk-stock-rating-lowered-by-morgan-stanley-2026-11-13/)
2. [SEC EDGAR, Netskope, Inc. Schedule 13G/A, Lightspeed Venture Partners entities, filed 13 November 2026](https://www.sec.gov/Archives/edgar/data/2063196/000153906126000018/0001539061-26-000018-index.htm)
3. [MarketScreener, "Netskope Shares Fall After Morgan Stanley Downgrade," 13 November 2026](https://www.marketscreener.com/news/netskope-shares-fall-after-morgan-stanley-downgrade-ce785eded98bf620)
4. [TechCrunch, "Cloud security broker Netskope raises $100m more led by Lightspeed and Accel," 6 June 2017](https://techcrunch.com/2017/06/06/cloud-security-broker-netskope-raises-100m-more-led-by-lightspeed-and-accel/)
5. [Seeking Alpha, "Netskope downgraded at Morgan Stanley on competition concerns," 13 November 2026](https://seekingalpha.com/news/4672357-netskope-downgraded-at-morgan-stanley-on-competition-concerns)
6. [GlobeNewswire via Morningstar, "Netskope Announces Strong Second Quarter Fiscal 2027 Financial Results," 2 September 2026](https://www.morningstar.com/news/globe-newswire/9820479/netskope-announces-strong-second-quarter-fiscal-2027-financial-results)
7. [Quantisnow, "Netskope downgraded by Morgan Stanley with a new price target," 13 November 2026](https://www.quantisnow.com/insight/netskope-downgraded-by-morgan-stanley-with-a-new-price-target-6789385)
8. [Netskope, quarterly figures from its SEC filings, retrieved 14 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0002063196)


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Lightspeed Venture Partners discloses its $1.2 billion Netskope stake with the stock above its average target — The Inference. Canonical: https://theinference.org/article/lightspeed-venture-partners-discloses-its-1-2-billion-netskope-stake-with-the-stock-above-its-average-target