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Cyber security startup Wiz is in talks to raise funds at a valuation of more than $10bn, underscoring the sector’s resilience and signalling a revival in venture capital markets.
Founded just four years ago, Wiz is in talks with investors including Thrive, Light Speed Venture Partners and G Squared to raise hundreds of millions of dollars, according to people familiar with the matter.
The company could seek to raise roughly $800mn, one of the people said, adding that Sequoia and the Israeli cyber venture group Cyberstarts were also in talks to participate in the fundraising.
The terms have not been finalised and details could still shift or breakdown, the people warned.
While Wiz has a healthy cash position, new funding would help the company finance future acquisitions of other tech group to bolster its offering, one of the people said.
Wiz, Thrive, Lightspeed, G Squared, Sequoia and Cyberstarts declined to comment.
Wiz, led by former Microsoft executive Assaf Rappaport, focuses on providing cyber security in the cloud. Earlier this year the group said it was now generating the equivalent of $350mn in annual recurring revenue, a metric commonly used by fast-growing start-ups.
The company also appointed Dali Rajic, formerly a senior executive at cyber company Zscaler, as president and chief operating officer to help lead the company toward an eventual initial public offering.
Headquartered in New York and led by Israeli founders, Wiz’s fundraising, would if completed also signal the continued strength of Israel’s technology sector even amid its war with Hamas.
Rappaport has been among the most outspoken tech executives in Israel, protesting last year when Israeli Prime Minister Benjamin Netanyahu sought to curb the powers of the country’s judiciary.
Start-ups have faced a difficult few years as rising interest rates have made large fundraising rounds more challenging, after proliferating during the pandemic.
However, Wiz has continued to raise new funding at a steady pace. Last February it said it had raised $300mn at a $10bn valuation in a round led by Lightspeed.
Other previous investors in Wiz include Index Ventures, Greenoaks Capital Partners and Blackstone.
Wiz helps companies secure programs built and operated in the cloud, at a time when corporations are increasingly shifting their software online. The startup has said that it works with customers including Salesforce, Mars and BMW, and that it has more than 900 employees.
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