The recent $32 billion all-cash acquisition of Wiz by Alphabet, the parent company of Google, is expected to yield a massive payday for the cybersecurity startup’s early-stage investors.<\/p>\n
This deal represents a significant win for Sequoia, one of the most renowned venture capital firms, which is anticipated to generate $3 billion, roughly 25 times the amount it initially invested in the company, as reported by Bloomberg<\/a>. Although Sequoia’s limited partners will see substantial returns, their percentage gains will be significantly lower than those of another early Wiz backer, Israel-based VC firm Cyberstarts.<\/p>\n Cyberstarts, a cybersecurity-focused venture capital firm, invested $6.4 million from its first $54 million fund in Wiz’s seed round in February 2020.<\/p>\n Today, that fund owns 4.1% of Wiz, positioning it to make a substantial $1.3 billion from the deal, according to a person familiar with the firm’s performance. Additionally, Cyberstarts previously sold $120 million in Wiz shares through secondary transactions, bringing the fund’s total return to $1.42 billion \u2014 a remarkable 222x return on the original investment.<\/p>\n Cyberstarts also participated in Wiz’s later-stage rounds, investing a total of $40 million from its opportunity fund. These investments are now valued at $128 million, representing a more modest 3.2x return on invested capital, as told to TechCrunch by a person familiar with Cyberstarts’ performance.<\/p>\n \u201cCyberstarts is going to have one of the best-returning funds in VC history,\u201d Shai Goldman, a partner at Next Wave NYC, wrote on X<\/a>. \u201cThis investment was done out of their inaugural fund, a good reminder that Fund 1 can be amazing one to back as a LP.\u201d<\/p>\n Cyberstarts wasn’t an ordinary emerging VC manager when it closed its inaugural fund in 2018. The firm was founded by Gili Raanan, who previously spent nearly nine years as a Sequoia general partner leading its Israel investment strategy.<\/p>\n The small $54 million fund has already achieved a 26x multiple on its limited partner capital. And that\u2019s not even counting other potential exits, such as Island, a startup reportedly raising capital at a valuation of $4.5 billion<\/a>.<\/p>\n Index Ventures, which owns a 12% stake in Wiz, is poised to make over $3.8 billion once the sale is complete, as reported by Reuters<\/a>.<\/p>\n\n Introduction to Wiz’s Acquisition The recent $32 billion all-cash acquisition of Wiz by Alphabet, the parent company of Google, is expected to yield a massive payday for the cybersecurity startup’s…<\/p>\n","protected":false},"author":0,"featured_media":10869,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[3448,462,103,3449,524,3450],"class_list":["post-10868","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-cyberstarts","tag-exclusive","tag-google","tag-index-venture","tag-ma","tag-performance"],"jetpack_featured_media_url":"https:\/\/fusionmindlabs.com\/blogs\/wp-content\/uploads\/sites\/9\/2025\/03\/GettyImages-2161652078.jpg","_links":{"self":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts\/10868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/comments?post=10868"}],"version-history":[{"count":0,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts\/10868\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/media\/10869"}],"wp:attachment":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/media?parent=10868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/categories?post=10868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/tags?post=10868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Cyberstarts’ Investment in Wiz<\/h2>\n
Returns on Investment<\/h2>\n
Later-Stage Investments<\/h2>\n
Industry Reaction<\/h2>\n
Background on Cyberstarts<\/h2>\n
Performance of Cyberstarts’ Inaugural Fund<\/h2>\n
Other Investors’ Returns<\/h2>\n
Source Link<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"