The venture capital jackpot: How investors made billions from Wiz
Early-stage investors like Index Ventures, Insight Partners, Cyberstarts and Sequoia Capital proved that conviction and timing still define venture capital.
Google’s $32 billion acquisition of cybersecurity firm Wiz has generated massive returns for the startup’s early investors, underscoring the enduring appeal of high-growth cybersecurity firms in the venture capital world.
Index Ventures, the largest external shareholder in Wiz, stands out as one of the biggest beneficiaries of the deal. The firm, which initially invested $3.5 million in the company’s Seed round, continued backing Wiz in every subsequent funding stage. Its total investment of $245 million has now turned into a $4.3 billion windfall, representing one of the most lucrative venture capital returns in recent years.
Insight Partners also secured an impressive return on its investment. With an 8% stake in Wiz, the firm is set to realize $2.7 billion from the sale, translating to a multiple on invested capital (MOIC) of 15.5. Its holdings were spread across multiple funds, including Insight Partners Public Equities, which has the flexibility to invest in public companies.
Sequoia Capital, another early investor in Wiz, will reap approximately $3 billion from the deal. The firm’s initial $10 million seed investment played a crucial role in the company's early development, and it continued to invest in later rounds.
Cyberstarts, an Israel-based early-stage venture firm, also made one of the most striking returns from the acquisition. The firm co-led Wiz’s $21 million Seed round in 2020 at a post-money valuation of $67 million. Its initial $6.4 million investment from its first Seed fund is now valued at approximately $1.3 billion, marking a staggering 200x return.
Other investors that participated in later funding rounds, such as Thrive Capital, have also recorded substantial gains. Thrive led Wiz’s most recent funding rounds, including a valuation of $12 billion and a $16 billion employee tender offer late last year. With a $1 billion stake in Wiz, Thrive is securing a quick and profitable return on its investment.
The Wiz acquisition stands out not only for its size—being one of the largest venture-backed exits in history—but also for its impact on the cybersecurity investment landscape. The deal highlights how demand for cloud security solutions continues to drive record-breaking valuations, despite a broader slowdown in tech exits. It also demonstrates the power of early-stage venture investing, with firms that backed Wiz at its inception seeing exponential gains.
The acquisition is still subject to regulatory approval, which could take time given the heightened scrutiny on large tech deals. However, if finalized, the transaction could pave the way for further major exits in the cybersecurity sector, reinforcing investor confidence in companies that provide critical cloud security solutions.
For venture capital firms, the Wiz deal serves as a reminder that the most significant returns often come from early, high-conviction bets. While later-stage investments in Wiz were still profitable, the largest gains went to those who recognized the company’s potential from the start.
