Google parent Alphabet’s acquisition of cybersecurity startup Wiz has made several venture capital firms rich. Sequoia, a well-known VC firm, stands to make $3 billion from the deal, about 25 times its initial investment. However, early backer Cyberstarts will see far more substantial gains, with its original seed round investment now worth $1.3 billion.
Cyberstarts initially invested $6.4 million in Wiz’s seed round in 2020 and owns 4.1% of the company, giving it a remarkable return on investment. The firm also sold shares in secondary transactions, bringing its total return to $1.42 billion – a 222x return on its original investment.
This deal is a testament to Cyberstarts’ success as a venture capital firm. Started by former Sequoia general partner Gili Raanan, the firm’s inaugural fund has already achieved a 26x multiple on its limited partner capital. With other potential exits on the horizon, Cyberstarts is poised for even greater returns.
Index Ventures, which owns a 12% stake in Wiz, will make over $3.8 billion once the sale is complete. Sequoia’s gains may be impressive, but early backer Cyberstarts has secured an even more significant payday, cementing its position as one of the top-performing VC firms.
Source: https://techcrunch.com/2025/03/19/how-a-6m-bet-on-wiz-turned-into-a-massive-200x-return-for-one-early-backer