After rejecting Google takeover, cyber firm Wiz says it will IPO 'when the stars align'
Wiz is hoping to achieve $1 billion in annual recurring revenue in 2025 — a key condition the company wants to meet before going public.
Cybersecurity firm Wiz is seeking to hit $1 billion of annual recurring revenues next year, the company's billionaire co-founder Roy Reznik told CNBC, adding that the firm will go public "when the stars align."
History
Wiz was founded in 2019 by four Israeli friends, Assaf Rappaport, Eliran Moizel, Roy Yanai, and Avi Doron, while they were still serving in the 8200, Israel's intelligence unit. The company's early days were marked by a focus on developing its cloud security software, which was designed to scan cloud storage providers like Amazon Web Services and Microsoft Azure for risks.
In 2020, Wiz raised its first funding round, securing $30 million in venture capital from investors such as Sequoia Capital and Bessemer Venture Partners. The company used this funding to expand its engineering team and further develop its software.
Technology
Wiz's software is designed to scan cloud storage providers for risks, including security vulnerabilities, data breaches, and compliance issues. The company's software uses a proprietary algorithm to analyze the cloud storage provider's infrastructure and identify potential risks.
Wiz's software is built on top of a cloud-based architecture, which allows it to scale quickly and efficiently. The company's software is also designed to be highly customizable, allowing customers to tailor its features to their specific needs.
Growth
Wiz has experienced rapid growth since its founding, with its ARR more than tripling in the past year. In 2022, the company achieved a remarkable feat, reaching $100 million in ARR in just 18 months, making it the fastest software company to achieve this milestone.
Wiz's growth has been driven by its expanding customer base, which now includes some of the world's largest organizations. The company's software is used by customers such as online retailer ASOS and digital bank Revolut, among others.
Acquisition Bid from Google
In February 2023, Wiz rejected a staggering $23 billion acquisition bid from Google. The bid was widely seen as a surprise, and it marked a significant turning point in Wiz's history.
Wiz CEO Assaf Rappaport expressed his gratitude for the bid but made it clear that the company would not be sold. "We're flattered by the offer, but we believe we can do it alone and achieve even greater things as an independent company," he said.
Despite the rejection of the Google bid, Wiz has received interest from numerous other parties looking to acquire the company. However, Rappaport remains resolute in his decision to take the company public, citing the company's impressive growth record and its potential for continued expansion.
Expansion into the UK
Wiz has been expanding its presence internationally, with a particular focus on Europe. The company has opened its first European office in London, a move that CEO Reznik attributes to the UK's vibrant talent pool and thriving cybersecurity ecosystem.
The UK represents a major growth opportunity for Wiz, particularly in the cybersecurity space. Recent high-profile cyberattacks on National Health Service hospitals and Transport for London have highlighted the urgent need for cloud security solutions, and Wiz is well-positioned to capitalize on this trend.
Growth Plans
Wiz's CEO, Assaf Rappaport, has outlined the company's growth plans, which include doubling its ARR to $1 billion by 2025. The company is also planning to expand its engineering team and further develop its software.
In an interview with CNBC, Reznik said, "We're excited about the opportunities ahead and we're committed to continuing to grow and innovate. We believe that our software is a game-changer in the cloud security space, and we're confident that we can make a significant impact over the next few years."
Wiz's expansion into the UK is seen as a strategic move to tap into the continent's vast and growing cloud security market. The company's software is already being used by customers in the UK, and it is expected to play a major role in the country's growing cybersecurity ecosystem.
Market Opportunity
The cloud security market is poised for explosive growth, with estimates suggesting it will reach $1 trillion over the next few years. Wiz is well-positioned to capitalize on this trend, with its innovative software and strong engineering capabilities.
The cloud security market is dominated by a few large players, but there is still a significant opportunity for smaller players to make a dent. Wiz is positioned to take advantage of this opportunity, with its software designed to be highly customizable and its engineering team focused on developing innovative solutions.
Overall, Wiz is a company that is poised for significant growth and success in the cloud security space. Its innovative software, strong engineering capabilities, and strategic expansion plans make it an exciting company to watch in the years to come.
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