Google’s $32 billion acquisition of cybersecurity firm Wiz has generated massive returns for the startup’s early investors, underscoring the enduring appeal of high-growth cybersecurity firms in the venture capital world.
Index Ventures, the largest external shareholder in Wiz, stands out as one of the biggest beneficiaries of the deal. The firm, which initially invested $3.5 million in the company’s Seed round, continued backing Wiz in every subsequent funding stage. Its total investment of $245 million has now turned into a $4.3 billion windfall, representing one of the most lucrative venture capital returns in recent years.
Insight Partners also secured an impressive return on its investment. With an 8% stake in Wiz, the firm is set to realize $2.7 billion from the sale, translating to a multiple on invested capital (MOIC) of 15.5. Its holdings were spread across multiple funds, including Insight Partners Public Equities, which has the flexibility to invest in public companies.
Sequoia Capital, another early investor in Wiz, will reap approximately $3 billion from the deal. The firm’s initial $10 million Seed investment played a crucial role in the company’s early development, and it continued to invest in later rounds.
Greenoaks is also a significant investor in Wiz, with a 6% stake that would give it $2 billion in returns at close. Advent International is also a winner with a 4% stake.
Cyberstarts, an Israel-based early-stage venture firm, also made one of the most striking returns from the acquisition. The firm co-led Wiz’s $21 million Seed round in 2020 at a post-money valuation of $67 million. Its initial $6.4 million investment from its first Seed fund is now valued at approximately $1.3 billion, marking a staggering 200x return.
Other investors that participated in later funding rounds, such as Thrive Capital, have also recorded substantial gains. Thrive led Wiz’s most recent funding rounds, including a valuation of $12 billion and a $16 billion employee tender offer late last year. With a $1 billion stake in Wiz, Thrive is securing a quick and profitable return on its investment.
