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Cybersecurity startup Wiz is in talks to raise money at a valuation of more than $10 billion, underscoring the industry’s resilience and signaling a recovery 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 may be looking to raise around $800 million, one of the people said, adding that Sequoia and Israeli cyber venture group Cyberstarts were also in talks to participate in the fundraising.
Terms have not been finalized and details could still change or deteriorate, the people warned.
While Wiz has a healthy cash position, new financing would help the company finance future acquisitions of other technology groups to strengthen 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 cybersecurity in the cloud. The group said earlier this year that it now generates the equivalent of $350 million in annual recurring revenue, a metric commonly used by fast-growing start-ups.
The company also named Dali Rajic, a former executive at IT firm Zscaler, as president and chief operating officer to help guide the company toward a possible initial public offering.
Based in New York and led by Israeli founders, Wiz’s fundraising, if completed, would also signal the continued strength of Israel’s tech sector even during the 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 rein in the powers of the country’s judiciary.
Startups have faced a tough 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 raised $300 million at a $10 billion valuation in a round led by Lightspeed.
Other previous investors in Wiz include Index Ventures, Greenoaks Capital Partners and Blackstone.
Wiz helps companies protect programs created and managed in the cloud, at a time when companies are increasingly moving their software online. The startup said it works with clients including Salesforce, Mars and BMW and has more than 900 employees.