{"id":657952,"date":"2025-03-20T05:10:14","date_gmt":"2025-03-20T02:10:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-a-6m-bet-on-wiz-turned-into-a-massive-200x-return-for-one-early-backer\/"},"modified":"2025-03-20T05:10:14","modified_gmt":"2025-03-20T02:10:14","slug":"how-a-6m-bet-on-wiz-turned-into-a-massive-200x-return-for-one-early-backer","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-a-6m-bet-on-wiz-turned-into-a-massive-200x-return-for-one-early-backer\/","title":{"rendered":"#How a $6M bet on Wiz turned into a massive 200x return for one early backer"},"content":{"rendered":"
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Wiz\u2019s $32 billion all-cash acquisition by Google parent Alphabet promises a colossal payday for the cybersecurity startup\u2019s early-stage investors.<\/p>\n

The deal is a big win for Sequoia, one of the best-known VC firms, which stands to make $3 billion, about 25x the money it invested in the company, Bloomberg reported<\/a>. Despite substantial returns for Sequoia\u2019s limited partners, their percentage gains will be far less than those of another early Wiz backer: Israel-based VC Cyberstarts.<\/p>\n

Cybersecurity-focused Cyberstarts invested $6.4 million from its first $54 million fund towards Wiz\u2019s seed round in February 2020. <\/p>\n

Today, that fund owns 4.1% of Wiz, which means it\u2019s poised to make a whopping $1.3 billion on the deal, according to a person familiar with the firm\u2019s performance. Cyberstarts also previously sold $120 million shares of Wiz in secondary transactions, bringing the fund\u2019s total return to $1.42 billion \u2014 a remarkable 222x return on the original investment.<\/p>\n

Cyberstarts also participated in Wiz\u2019s later-stage rounds, investing a total of $40 million from its opportunity fund. Those investments are now worth $128 million, a more modest 3.2x return on invested capital, a person familiar with Cyberstarts performance told TechCrunch.<\/p>\n

\u201cCyberstarts is going to have one of the best returning funds in VC history,\u201d Shai Goldman, a partner at Next Wave NYC, wrote on X<\/a>. \u201cThis investment was done out of their inaugural fund, a good reminder that Fund 1 can be amazing one to back as a LP.\u201d<\/p>\n

Cyberstarts wasn\u2019t an ordinary emerging VC manager when it closed its inaugural fund in 2018. The firm was started by Gili Raanan, who previously spent nearly nine years as a Sequoia general<\/a> partner leading its Israel investment strategy.<\/p>\n

The small $54 million fund has already achieved a 26x multiple on its limited partner capital. And that\u2019s not even counting other potential exits, such as Island, a startup reportedly raising capital at a valuation of $4.5 billion<\/a>. <\/p>\n

Index Ventures, which owns a 12% stake in Wiz, is poised to make over $3.8 billion once the sale is complete, Reuters reported<\/a>.<\/p>\n<\/div>\n

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If you want to read more like this article, you can visit our Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Wiz\u2019s $32 billion all-cash acquisition by Google parent Alphabet promises a colossal payday for the cybersecurity startup\u2019s early-stage investors. The deal is a big win for Sequoia, one of the best-known VC firms, which stands to make $3 billion, about 25x the money it invested in the company, Bloomberg reported. Despite substantial returns for Sequoia\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":657953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2024\/07\/GettyImages-2161652078.jpg?resize=1200,800","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[154994,61594,26293,152631,92305,96327,72287,151477],"class_list":["post-657952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-cyberstarts","tag-exclusive","tag-google","tag-index-venture","tag-ma","tag-performance","tag-security","tag-venture"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/657952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=657952"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/657952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/657953"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=657952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=657952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=657952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}