Cloud security firm Wiz has secured $1 billion in its latest funding round, achieving a $12 billion valuation and bringing the company's total financing to $1.9 billion. The announcement follows the acquisition of cloud detection and response provider Gem Security as Wiz seeks to expand its cloud-native application protection platform (CNAPP).
This funding round was led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, alongside participation from other investors such as Greylock, Wellington Management, and Salesforce Ventures.
Company Growth and Industry Recognition
Founded in 2020, Wiz reported an annual recurring revenue (ARR) of $350 million in 2023.
The company continues to bolster its leadership team with key hires, including Dali Rajic, formerly COO and president of Zscaler, who joined as chief operating officer and president in early 2024.
There have long been rumors that Wiz would become a public company through an eventual IPO, but Rappaport told Reuters that a share offering was not imminent.
"Eventually, our goal is to become a public company," he said. But there is "no pressure to go public and no need to raise more funds. So, we can time our IPO when we feel ready and when the markets are ready."
Strategic Vision and Next Steps
Wiz says it intends to use the new funding to drive further mergers and acquisitions, talent acquisition, and product development, with Rappaport calling 2024 “the year of consolidation in cybersecurity” in a recent Bloomberg video.
The company says it is looking to maintain its growth trajectory through strategic acquisitions while expanding its platform to address evolving cybersecurity challenges.
"We believe that in the next at least 12 to 18 months there will be many opportunities in the cybersecurity market and specifically in cloud security," chief executive and co-founder Assaf Rappaport told Reuters.
He also told Reuters Wiz was looking to add new capabilities internally and through acquisition, with founders looking for exits, investors eager to show returns and customers wanting to see more innovation in security platforms.
Continuing Innovation: Additional Insights
Assaf Rappaport, CEO and co-founder, Wiz, commented on the news:
"We will never stop innovating on behalf of our customers. Wiz has worked to earn the love of security and development teams; as we bolster our CDR capabilities, SOC teams are also part of that equation. This funding round will help us continue to solve customers’ complex cloud security challenges in an elegant, simple manner while supporting their broader vendor consolidation efforts."
Philip Clark from Thrive Capital added:
"Wiz is a true cybersecurity platform - perhaps the only such company started in the last decade. This remarkable trajectory is a reflection of the team’s deep expertise, relentlessness, and execution. Wiz is poised to solve the next wave of security problems for its customers, including the challenge posed by AI. We are thrilled to be co-leading this round."
