Wiz rejected a $23 Billion Google Offer

Assaf Rappaport, co-founder and CEO of cloud security startup Wiz, revealed that declining a $23 billion acquisition proposal from Google was “the toughest decision ever.” He believes the company has the potential to grow even larger and reach a valuation of $100 billion, emphasizing that cloud security is the future.

The company that dominates cloud security globally will likely be valued at over $100 billion. While I’m not certain that will be Wiz, our success is within our control if we execute properly.”

Despite the potential rewards, Rappaport acknowledged the difficulty of the decision, considering the interests of Wiz’s investors and employees. “I was super nervous,” he confessed, noting that the decision ultimately rested with him and his co-founders. “In a healthy company with strong investor relationships, it’s always the founder’s call.”

At the time of the offer, Wiz had a private valuation of $12 billion and had secured $1 billion in funding from investors including Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital, Index, and Thrive Capital, earning the title of “the world’s largest cybersecurity unicorn.”

In an email to Wiz employees, Rappaport expressed his confidence in the team, saying, “Turning down such an impressive offer is challenging, but I believe in our exceptional team.” He confirmed that while there were other offers, none matched Google’s. When asked if Amazon was among those potential buyers, he simply noted that startups like Wiz often explore multiple discussions.

Wiz has rapidly emerged as a leading player in cybersecurity, recently reaching $500 million in annual recurring revenue with ambitions to double that to $1 billion by 2025, according to co-founder and VP of R&D, Roy Reznik. Achieving this milestone is viewed as essential for an IPO, a commitment the company made to its employees after rejecting Google’s offer.

Regarding acquisitions, Rappaport mentioned that while Wiz made two purchases last year—Gem and Rafft—the company generally adopts a risk-averse approach. “Just because we have the funds doesn’t mean we need to be aggressive,” he explained. “With a team of 1,500, each acquisition brings new cultural dynamics that could impact Wiz’s overall culture.”