At the recent TechCrunch Disrupt 2024 conference, Assaf Rappaport, co-founder and CEO of cloud security firm Wiz, discussed the difficult choice to turn down a whopping $23 billion buyout offer from Google. Rappaport emphasized that cloud security is the way of the future for cybersecurity and expressed optimism that Wiz has the ability to grow much bigger, with plans to reach $100 billion.
Rappaport thought about how tough the choice was, particularly in light of what it meant for Wiz’s employees and investors. “I was super nervous,” he said, adding that he and his co-founders made the final decision. Wiz had raised $1 billion from prominent investors, including Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital, and Thrive Capital, and was valued at $12 billion at that point, making it “the world’s largest cybersecurity unicorn.”
In an email, Rappaport reassured his team that Alphabet, Google’s parent company, had made a substantial offer but that their decision to decline the chance was justified by the firm’s extraordinary talent and ambition. Even though there had been other takeover approaches, none had been as large as Google’s. Rappaport suggested that it was common for businesses in Wiz’s situation to have different conversations when questioned about Amazon’s interest.
Wiz has grown quickly; it recently reached $500 million in recurring income annually, and it has big intentions to double that amount by 2025. Reaching this goal is crucial for a potential initial public offering (IPO), which the company had promised its staff after Google’s offer was turned down, according to Rappaport. Regarding mergers and acquisitions, he pointed out that although Wiz had made two acquisitions in the previous 12 months, the business takes a cautious approach, putting its cultural integrity first despite its growing 1,500-person workforce and realizing that each acquisition could have a big influence on the company culture.