Wiz secures multi-million SoftBank investment to expand in Asian cloud market
Wiz secures multi-million SoftBank investment to expand in Asian cloud market
The Israeli cyber company, which recently rejected a $23 billion offer from Google, plans to double its workforce in Asia by the end of the year after recently recruiting dozens of employees in Japan, Singapore, Australia, and New Zealand, and establishing a new data center in Sydney.
Japanese investment giant SoftBank is investing tens of millions of dollars in the Israeli cyber unicorn Wiz, Calcalist has learned. This strategic investment by SoftBank is part of Wiz's efforts to expand into the Asian market. As of July this year, Wiz's annual revenue rate is approximately $500 million, and it is projected to reach $1 billion by 2025. Last May, the company raised $1 billion based on a valuation of over $12 billion.
SoftBank’s investment in Wiz came before Google offered $23 billion to acquire the company, a deal that ultimately fell through after the company's founder and CEO, Assaf Rappaport, chose to continue building the company rather than accepting the tech giant’s offer.
SoftBank’s investment is aligned with forecasts for a significant increase in cloud spending in Asia, which is expected to reach $153.6 billion by 2026, according to IDC. This positions Asia as a strategic target for Wiz's global growth. The collaboration with SoftBank is expected to establish Wiz as a major player in cloud security on the continent. Wiz is currently undertaking significant recruitment efforts in the region and is investing in building sales systems.
Wiz was founded by CEO Assaf Rappaport, CTO Ami Luttwak, VP Product Yinon Costica, and VP R&D Roy Reznik, who according to Forbes now all have a personal fortune of around $1 billion. 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.
To date, Wiz has raised $1.9 billion. Its investors include Andreessen Horowitz, Lightspeed Venture Partners, Thrive Capital, Greylock, Wellington Management, Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital. The company currently employs over 1,200 people, most of whom are based in the USA (New York, Washington, Austin, Texas, Denver, and California), with the remainder spread across Tel Aviv, Europe, and Asia. The company is recruiting for hundreds of open positions, including dozens in Israel, and currently provides services to approximately 40% of Fortune 100 companies.
A recent Economist Impact study indicates that cloud services are the most rapidly emerging and dominant technology in Asia, with 85% of executives reporting that their organizations are already using the cloud. In response to this growth, Wiz plans to double its workforce on the continent by the end of the year. In recent months, Wiz has recruited dozens of employees in Japan, Singapore, Australia, and New Zealand, and has established a new data center in Sydney.
