this post was submitted on 09 Jun 2025
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Corporate VPN startup Tailscale secures $230 million CAD Series C on back of “surprising” growth

Pennarun confirmed the company had been approached by potential acquirers, but told BetaKit that the company intends to grow as a private company and work towards an initial public offering (IPO).

“Tailscale intends to remain independent and we are on a likely IPO track, although any IPO is several years out,” Pennarun said. “Meanwhile, we have an extremely efficient business model, rapid revenue acceleration, and a long runway that allows us to become profitable when needed, which means we can weather all kinds of economic storms.”

Keep that in mind as you ponder whether and when to switch to self-hosting Headscale.

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[–] possiblylinux127@lemmy.zip 14 points 1 week ago* (last edited 1 week ago) (1 children)

I'm not that worried as there are alternatives like Netbird. The underlying tech really isn't hard to replicate since Wireguard is pretty standard.

I think it would be cool if Tailscale made it into the enterprise arena.

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[–] qjkxbmwvz@startrek.website 12 points 1 week ago (1 children)

I think a lot of companies view their free plan as recruiting/advertising


if you use TailScale personally and have a great experience then you'll bring in business by advocating for it at work.

Of course it could go either way, and I don't rely on TailScale (it's my "backup" VPN to my home network)... we'll see, I guess.

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[–] supersquirrel@sopuli.xyz 11 points 1 week ago* (last edited 1 week ago)

pre-emptive pikachu face strike

[–] chameleon@fedia.io 9 points 1 week ago (4 children)

They also had a major ass security issue that a security company should not be able to get away with the other day: assuming everyone with access to an email domain trusts each other unless it's a known-to-them freemail address. And it was by design "to reduce friction".

I don't think a security company where an intentional decision like that can pass through design, development and review can make security products that are fit for purpose. This extends to their published client tooling as used by Headscale, and to some extent the Headscale maintainer hours contributed by Tailscale (which are significant and probably also the first thing to go if the company falls down the usual IPO enshittification).

[–] surph_ninja@lemmy.world 7 points 1 week ago

Isn’t that the entire design philosophy of tailscale?: reduce friction, at the cost of some security.

If security is your main priority, you should be using more secure options, even if they are less convenient or tougher to maintain.

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[–] deur@feddit.nl 9 points 1 week ago (1 children)

I've realized how easy it is to just actually run a network rather than half ass it with tailscale. I recommend this, it's fun.

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[–] ohshit604@sh.itjust.works 6 points 1 week ago* (last edited 1 week ago)

So glad my router supports WireGuard/OVPN server hosting, doing it this way also relieves resources off your homelab and for whatever reason your homelab shuts off or loses network access you can at least rely on your router to re-establish the VPN server without further intervention.

[–] Mordikan@kbin.earth 5 points 1 week ago (5 children)

Headscale is great if you like networking fun, but that aside I'm not understanding why VC funding is such a black mark to the poster. Tailscale doesn't generate meaningful revenue streams as its early-stage, so it has to secure funding to continue operations until they achieve high enough revenue to go public. That's pretty standard in a business life-cycle, though. It seems like the main complaint is that Tailscale is a business. And what about the Linux Foundation? They are funded through private equity. Should you consider switching away because of that?

[–] Feyd@programming.dev 10 points 1 week ago

Not that it is a business but is a specific kind of business. VC funded startups eyeing an IPO more often than not start doing things users are not happy with. Maybe tailscale won't, but might as well be aware what kind of company they are acknowledge there is a decent chance of rugpulls

[–] Revan343@lemmy.ca 9 points 1 week ago (4 children)

It seems like the main complaint is that Tailscale is a business. And what about the Linux Foundation?

The Linux Foundation is not a business.

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[–] tequinhu@lemmy.world 8 points 1 week ago (21 children)

Yup, I don't know if that is OP's intention, but I would agree myself with the complaint that "Tailscale is a business"

The way I see it, if it's a business it must generate revenue (either now or down the road), and that is enough to have me worried. I do have a Tailscale registration, and the way they approach email communication is already a yellow flag to me (too many ad emails)

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[–] Ulrich@feddit.org 6 points 1 week ago* (last edited 1 week ago) (7 children)

That's pretty standard in a business life-cycle, though

I don't know where people ever got the idea that normal = acceptable. I hear this used to justify all sorts of awful crap. It was only ever normalized because users were apathetic.

And what about the Linux Foundation? They are funded through private equity. Should you consider switching away because of that?

Does The Linux Foundation have complete control over Linux?

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