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Cloud security startup Wiz, now valued at $10B, raises $300M

Cybersecurity continues to be a major area for investment among businesses -- and VCs. While a decline from the previous year, venture capital funding in the cybersecurity sector totaled $18.5 billion in 2022, according to Momentum Cyber.

The popularity comes in part from the rise in cyberattacks. Check Point Research reports that global cyberattacks increased by 38% in 2022 compared to 2021, and nearly nine in 10 company boards told Gartner in a recent survey that they view cybersecurity as a "business risk" rather than solely a technical or IT issue.

Plenty of startups have benefited from the boom. But one that's done especially well is Wiz, a cloud security company founded by Assaf Rappaport, Ami Luttwak, Yinon Costica and Roy Reznik. Wiz today announced that it raised $300 million in a Series D round co-led by Lightspeed Venture Partners and Greenoaks Capital Partners, with participation from angel investors including Starbucks owner Howard Schultz and French business magnate Bernard Arnault, valuing Wiz at around $10 billion post-money.

Bringing its funding to nearly $1 billion ($900 million), CEO Rappaport says the new cash will be put toward product development and hiring well into the new year. "When we first launched Wiz, we set out to design a product with the world’s leading enterprises in mind, and all the complexity and operational considerations their dynamic cloud environments present," he told TechCrunch in an email interview. "With Wiz, companies are developing a new maturity level in their cloud environments by improving security, increasing visibility and driving agility."

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"Explosive" is the right word. Wiz's success in securing financing is impressive considering that startups are increasingly failing to command the high valuations that were common in past years. As per the aforementioned Momentum Cyber report, the value of deals in the cybersecurity sector in 2022 dropped by more than a quarter versus 2021. PitchBook data shows a decline in cybersecurity valuations at the seed and Series A stages in particular.

New York-based Wiz -- which claims that it's the world's largest cybersecurity unicorn and the fastest software-as-a-service company to achieve a $10 billion valuation -- was founded in March 2020. The initial team worked together for over 20 years including as Microsoft's cloud security group leads and as the co-founders of enterprise cybersecurity firm Adallom, which was acquired by Microsoft for $320 million.

Rappaport was previously the GM at Microsoft's Israel R&D department, where Luttwak was the CTO. Costica, for his part, was the partner director of product management at Microsoft's cloud security division.

Wiz
Wiz

Wiz's cloud dashboard, which offers a range of configuration options. Image Credits: Wiz

Rappaport, Luttwak and Costica worked alongside Reznik at Adallom, and all joined Microsoft after the acquisition.