Pivotal Partners reposted this
I know the CrowdStrike outage has been dominating the news cycles for the past week, but Wiz has put on an absolute masterclass in corporate strategy these past few weeks, leading up to turning down Google's $23 billion acquisition offer to go IPO. Here’s a recap of their meteoric rise and strategic maneuvers: * Wiz emerged in December 2020 after a nine-month stealth mode, armed with $100 million from investors like Index Ventures, Sequoia Capital, and Insight Partners. * By August 2022, Wiz had reached $100 million in ARR within just 18 months, making it the fastest-growing software company ever. * In February 2023, Wiz raised an additional $300 million at a staggering $10 billion valuation, underscoring huge investor confidence. * In August 2023, rumors swirled about Wiz potentially acquiring the publicly traded cyber company SentinelOne, with whom they had an existing partnership. Although this rumor was later debunked and the partnership dissolved, it highlighted Wiz's strategic power and its ability to create market positioning and let go of partnerships no longer serving them. * By the end of 2023, Wiz reported an impressive $350 million ARR, further cementing its status as a market leader. * In early 2024, the news of Wiz acquiring its biggest competitor, Lacework, broke. Potential terms of the deal later came out, amounting to a price that was a ~98% reduction on Lacework's peak valuation, effectively unsettling the competition. * In April 2024, at the RSA Conference, Wiz announced a $1 billion raise at a $12 billion valuation, bringing its total funding to $1.9 billion, just edging out the total amount of funding Lacework had raised at $1.8 billion. * Lacework was then sold to Fortinet, and Wiz's strategic maneuvers had effectively neutralized a major competitor. * Wiz’s leadership's strategic acumen was further demonstrated when Google offered to acquire Wiz for $23 billion, one of the largest ever for a pure-play cybersecurity company (second only to Cisco acquiring Splunk for $28 billion, even though Splunk isn’t a “pure play” cyber company). * Then just this week, Wiz made the bold decision to end acquisition talks and pursue an IPO, showcasing their confidence in continued independent growth and market leadership. This M&A bid could set the price floor for an IPO run. The orchestrated efforts by Wiz’s marketing and corporate development teams have been nothing short of genius. Their mastery of perception, timing, and leverage has not only driven rapid growth but also positioned Wiz as a formidable player in the cybersecurity industry. Wiz's journey from a stealth startup to a powerhouse on the brink of an IPO is a testament to its strategic brilliance, market foresight, and being in the right places at the right times. Of course, none of this could have happened without the leadership of the founding team at the helm. As it moves towards its IPO, the industry watches in anticipation of Wiz's next move.