In a recent TechCrunch Disrupt seminar in 2024, Assaf Rappaport, the co-founder and CEO of cloud security company Wiz, disclosed that Google had made a $23 billion offer to acquire the entire business, which Wiz ultimately turned down. Rappaport described it as the toughest decision of his life.
Speculations arose prior to this deal falling through due to concerns from investors about regulatory scrutiny since Google was the buyer. Subsequently, Wiz was reportedly seeking new investment partners. However, Rappaport believes it was the right decision as cloud security products are poised for significant market expansion, potentially reaching a trillion-dollar valuation. While the future remains uncertain, they are in control of their destiny.
The complexity of the decision stemmed from differing perspectives among shareholders and employees. Rappaport acknowledged the anxiety surrounding this situation, but emphasized it was ultimately the founders’ decision. Presently, investors in Wiz include venture capital firms such as Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital, Index, and Thrive Capital, collectively investing over $1 billion. The latest valuation of the company stands at around $12 billion, with a revenue of $500 million in the past 12 months, marking a significant milestone for the company.
TLDR: Assaf Rappaport, CEO of Wiz, rejected Google’s $23 billion acquisition offer, believing in the company’s potential for massive growth in the cloud security market. Despite concerns from investors and the workforce, the decision was seen as crucial for the company’s future. Investors, including top firms like Andreessen Horowitz and Sequoia Capital, have collectively backed Wiz with over $1 billion in investments, leading to a $12 billion valuation and $500 million in revenue over the past year.
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