At the recent TechCrunch Disrupt 2024 conference, Assaf Rappaport, co-founder and CEO of cloud security startup Wiz, spoke about turning down a $23 billion offer from Alphabet (Google’s parent company). This decision was not taken lightly, and Rappaport admitted to being "super nervous" about the impact it would have on his investors and employees.
The Opportunity to Become a 100-Plus Billion-Dollar Company
When asked why Wiz turned down the offer, Rappaport emphasized that cloud security is the future, and the company believes it has the potential to become a 100-plus billion-dollar company. He stated, "We believe it’s bigger than endpoint, bigger than networks, so the opportunity to become a 100-plus billion dollar company is there." While he didn’t confirm whether Wiz would be the one to achieve this goal, Rappaport mentioned that if they execute correctly, it’s within their reach.
A $23 Billion Offer from Google
At the time of the offer, Wiz had a private valuation of $12 billion. The company had already raised $1 billion from investors backed by prominent firms like Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital, Index, and Thrive Capital. This significant investment helped Wiz become one of the fastest-growing cybersecurity startups in recent years.
Wiz’s Growth and Future Plans
The company has been on a rapid growth trajectory, hitting $500 million in annual recurring revenue this month. Wiz hopes to double that number to $1 billion in 2025, which Reznik believes is essential for an Initial Public Offering (IPO). After turning down the Google offer, the company promised its employees that it would go public.
M&A Strategy
When asked about Wiz’s Mergers and Acquisitions (M&A) strategy, Rappaport stated that they are risk-averse. Although the company made two acquisitions in the last year (startups Gemend and Rafft), he emphasized that acquiring other companies can be challenging due to cultural integration issues.
Conclusion
Assaf Rappaport’s decision to turn down a $23 billion offer from Google was not taken lightly. However, he believes it was necessary for Wiz to continue growing and becoming one of the leading cloud security companies in the world. With a strong team and a solid vision, Wiz is poised to achieve its goals and potentially become a 100-plus billion-dollar company.
Related Content
- TechCrunch Disrupt 2024: The conference where Assaf Rappaport spoke about turning down the Google offer.
- Wiz’s Growth and Future Plans: The article discusses Wiz’s rapid growth and future plans, including hitting $1 billion in annual recurring revenue in 2025.
- M&A Strategy: Wiz’s risk-averse approach to M&A and its challenges with cultural integration.
External Links
Additional Resources
- Wiz’s Blog: Wiz’s official blog, where they share insights on cloud security and related topics.
- Cloud Security News: A curated list of news articles related to cloud security.
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