Cybersecurity firm Wiz announced on Tuesday significant funding round, securing $1 billion at a valuation of $12 billion. This recent round includes a secondary component worth tens of millions of dollars, spearheaded by the American investment fund Andreessen Horowitz, along with Lightspeed Venture Partners and Thrive Capital.
Greylock and Wellington Management also participated, in addition to the company's existing investors. Since its inception in 2020, Wiz has amassed a total of $1.9 billion in funding, with a previous round in February 2023 raising $300 million at a $10 billion valuation.
This announcement follows reports earlier in the week about unsuccessful negotiations to acquire Lacework. Wiz predicts that 2024 will be "the year of consolidation" in the cybersecurity sector. In April, it expanded its Cloud Native Application Protection Platform (CNAPP) by acquiring Gem Security, and in December it purchased the startup Raftt. The company also made attempts over the past year to acquire Sentinel One and Lacework, but these did not come to fruition.
By the end of 2023, Wiz had achieved a sales volume of $350 million, becoming the fastest-growing software company globally by reaching an Annual Recurring Revenue (ARR) of $100 million within just 18 months of starting its sales. Earlier this year, Wiz appointed Daly Rajak, the former COO and president of the public cybersecurity company Zscaler, as its president and COO.
"Our primary mission is to continue driving innovation for our customers and to add value to the security and development teams using our platform," according to Assaf Rappaport, co-founder and CEO of Wiz. "This latest round of funding will enable us to continue addressing the most complex challenges in cloud security and assist organizations in advancing consolidation processes among the security tools they utilize."
Sarah Wong from the investment fund Andreessen Horowitz said that "Wiz is not just a pioneer in cloud security – the company's management has shown an exceptional ability to move quickly, recognize market dynamics and adapt swiftly. These qualities have allowed the company to grow rapidly and strategically, establishing it as a leading player in the cybersecurity industry."