Wiz founders to net over $2 billion each in Google deal
Wiz founders to net over $2 billion each in Google deal
CEO Assaf Rappaport, CTO Ami Luttwak, VP Product Yinon Costica, and VP R&D Roy Reznik are each believed to hold an estimated 10% of the company. With all four being Israel residents, each will have to pay 25% capital tax and an additional 3% surtax, meaning they will be contributing over $600 million each in taxes.
After entering the world billionaires list for the first time earlier this year, the four founders of cybersecurity decacorn Wiz look set to cash in earlier than expected should the deal to sell the company to Google parent Alphabet for $23 billion be completed. The Wall Street Journal revealed on Sunday that Alphabet is in advanced negotiations to acquire Wiz, which was last valued at $12 billion when the company raised $1 billion two months ago.
Wiz was founded in March 2020 by CEO Assaf Rappaport, CTO Ami Luttwak, VP Product Yinon Costica, and VP R&D Roy Reznik. They are each believed to hold an estimated 10% of the company, which means they are set to net around $2.3 billion each if the deal with Alphabet is completed.
With all four being Israel residents, the country is also set to benefit. Each founder will have to pay 25% capital tax and an additional 3% surtax, meaning they will be contributing around $640 million each in taxes.
Rappaport was previously General Manager of R&D at Microsoft Israel after having sold his previous company Adallom to the tech giant for $320 million in 2015. Wiz’s other co-founders have been with Rappaport since his days in the military and filled various roles at Adallom, too.
Among the investors set to benefit from a sale are cybersecurity fund Cyberstarts, which had held 10% of the company at one stage, but sold around 5% for $85 million in the past. Another early investor is Sequoia Capital, with the likes of Index Ventures and Insight Partners also participating in the Series A round in December 2020, as well as subsequent funding rounds. The latest round in May was led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, with participation from Greylock, Wellington Management, and existing investors Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital.
