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The biggest VC winners in the $32 billion Google-Wiz Deal

Mar 18, 2025 - businessinsider.com
Google has acquired cybersecurity startup Wiz for $32 billion, marking its largest acquisition ever. This deal underscores the impact of the AI boom on the valuation of cybersecurity firms. Prominent venture capital firms such as Sequoia Capital, Insight Partners, and Index Ventures, which invested early in Wiz, are set for significant returns. The acquisition, which follows a previously collapsed deal due to regulatory concerns, highlights Google's strategic focus on enhancing its cloud computing and security capabilities, areas where it has lagged behind competitors in the AI sector.

Wiz, which has seen rapid growth, reported over $500 million in annual recurring revenue as of July 2024 and is projected to reach $1 billion by mid-2025. The acquisition values Wiz at 32 times its projected revenue, a premium compared to typical cybersecurity firms. Google anticipates the deal will close in 2026, pending regulatory approval. However, regulatory challenges may arise due to Vice President JD Vance's support for stricter merger regulations, despite President Donald Trump's pro-M&A stance. Additionally, Google is currently facing two antitrust lawsuits, which could further complicate the acquisition process.

Key takeaways:

  • Google acquired cybersecurity startup Wiz for $32 billion, marking its largest acquisition ever.
  • The acquisition underscores the impact of the AI boom on the valuation of cybersecurity companies.
  • Venture capital firms like Sequoia Capital, Insight Partners, and Index Ventures are set for significant payouts from the deal.
  • The acquisition positions Wiz at the intersection of AI, cloud, and security, potentially accelerating innovation for Google.
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