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Cloud security startup Wiz turned down a Google takeover. Now, it plans to ride the AI boom to an IPO.

Dec 16, 2024 - businessinsider.com
Cloud security startup Wiz has experienced rapid growth since its inception in 2020, raising $1.9 billion and reaching $500 million in annual recurring revenue. The company, founded by former Microsoft Azure employees, rejected a $23 billion acquisition offer from Google in favor of pursuing an IPO. The AI boom has accelerated cloud adoption, benefiting Wiz as over 80% of its customers use AI services on public clouds, increasing the demand for cloud security. Wiz has expanded into Europe, establishing its headquarters in London, and aims to double its revenue to $1 billion before going public.

Wiz's growth strategy includes acquiring startups like Rafft, Gem, and Dazz to enhance its engineering talent and product offerings. The company is focused on becoming a leader in the cloud security domain, likening its market potential to established leaders in other cybersecurity sectors. With plans to expand its presence in Europe and prepare for more government-mandated cybersecurity measures, Wiz is also searching for a chief finance officer to facilitate its IPO ambitions. Despite these plans, the company is in "no rush" to go public, aiming to list in New York when ready.

Key takeaways:

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  • Wiz, a cloud security startup, has rapidly grown in four years, raising $1.9 billion and reaching $500 million in annual recurring revenue, with plans to double this before going public.
  • The AI boom has accelerated cloud adoption, benefiting Wiz as over 80% of its customers use AI services, which are often hosted on public clouds.
  • Wiz has expanded into Europe, establishing its European headquarters in London, and aims to derive 35% of its revenue from the region.
  • Wiz rejected a $23 billion acquisition offer from Google, focusing instead on preparing for an IPO and establishing itself as a leader in the cloud security domain.
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