Wiz's Billion-Dollar Pivot: From IPO Dreams to a $32B Google Acquisition

Wiz: The Cybersecurity Startup Everyone's Talking About

Founded in 2020 by former Microsoft and Adallom executives—Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak—Wiz came out swinging with a laser focus on modern cloud security. Within just 18 months, the company reached $100 million in annual recurring revenue (ARR), earning a reputation as the fastest cybersecurity startup to ever scale that quickly.

Wiz’s core product is its Cloud Native Application Protection Platform (CNAPP), which offers agentless visibility, risk prioritization, and automated threat detection across cloud environments. Their solution integrates deeply with AWS, Azure, Google Cloud, Oracle Cloud, and Kubernetes to protect workloads, code, configurations, and data.

With clients including Salesforce, BMW, DocuSign, Mars, and Plaid, Wiz carved out a sweet spot in cloud infrastructure security—one that few competitors have dominated so quickly.

How Wiz Makes Money

Wiz operates a recurring revenue model, primarily through enterprise-grade software subscriptions. Companies pay to use Wiz’s CNAPP platform, which includes modules for:

• Cloud security posture management (CSPM)

• Vulnerability management

• Threat detection and response (CDR)

• Container and Kubernetes security

• Infrastructure-as-code (IaC) scanning

• Data security posture management (DSPM)

• Compliance reporting and governance tools

Wiz's pricing tiers vary based on the size of the cloud environment, number of assets, and optional advanced modules. The company’s strong focus on scalability and simplicity has made it an appealing choice for both mid-sized businesses and Fortune 100 giants alike.

In short, Wiz earns money by helping organizations stay secure in the cloud—charging them to identify, prioritize, and eliminate risk with real-time intelligence and automation.

Follow the Money: Wiz’s Funding Trail

Wiz raised a total of $1.9 billion across five funding rounds between 2020 and 2024. Notable rounds include:

• Series A (Dec 2020): $100 million

• Series B (Apr 2021): ~$250 million

• Series C (Oct 2021): $250 million on a $6 billion valuation

• Series D (Feb 2023): $300 million on a $10 billion valuation

• Series E (May 2024): $1 billion at a $12 billion valuation

Investors included Sequoia Capital, Insight Partners, Index Ventures, Cyberstarts, Andreessen Horowitz, Lightspeed, Thrive Capital, Blackstone, and others. The latest share sales suggested a private market valuation of $15–$20 billion as of late 2024.

IPO Intentions: Why Wiz Rejected Google’s First Offer

In July 2024, Google offered to acquire Wiz for $23 billion. The leadership team turned it down, citing a desire to stay independent and pursue a public offering instead.

At the time, Co-founder and CEO Assaf Rappaport told employees that reaching $1 billion in ARR and going public were the company’s two top priorities. “Saying no to such humbling offers is tough,” he wrote, “but we’re focused on building something bigger.”

In January 2025, Wiz brought in Fazal Merchant—a veteran executive with IPO experience—as President and CFO. He estimated the company could be IPO-ready within 12 months. The goal was clear: hit $1 billion in ARR and go public by 2026 or 2027.

The IPO Headwinds Nobody Could Ignore

While Wiz's revenue trajectory was impressive, the broader market environment was not so rosy. The IPO market was sluggish, especially for high-growth tech companies. There were growing antitrust concerns around big tech acquisitions, as well as skepticism about high valuation multiples in the cybersecurity space.

Some analysts balked at Wiz's rumored valuation multiples—reportedly north of 60x ARR. Others pointed out the increasingly crowded nature of the cloud security market and questioned whether Wiz could maintain its meteoric growth post-IPO.

Ultimately, these market realities raised valid concerns. Going public might have brought visibility and independence, but also significant volatility and regulatory headaches.

Google Comes Knocking Again — With $32 Billion

In March 2025, the game changed. Google (via Alphabet Inc.) came back to the table with a new offer—this time for $32 billion in an all-cash deal. That was a 39% jump over the previous offer and nearly 3x Wiz’s May 2024 valuation.

The deal was announced on March 18, 2025, and is expected to close in 2026, pending regulatory approvals. Upon closing, Wiz will become part of Google Cloud.

This time, Wiz said yes.

Strategic Synergy: Why This Acquisition Makes Sense

The pairing of Google Cloud and Wiz is a strategic match. Google Cloud already has deep expertise in AI and a strong security portfolio (including Mandiant and Chronicle). But it lacked a dominant, easy-to-deploy cloud-native security platform that could serve multicloud environments at scale.

Enter Wiz.

Wiz’s platform will enhance Google’s ability to:

• Automate security across multicloud and hybrid environments

• Improve AI-based threat detection and response

• Lower customer costs for implementing security controls

• Maintain openness—Wiz will continue to support AWS, Azure, and Oracle Cloud

Thomas Kurian, CEO of Google Cloud, said it best: “Wiz and Google Cloud share a joint vision to make cybersecurity more accessible and simpler for organizations of any size and industry.”

What Changes for Wiz’s Customers?

Wiz will continue operating as a multicloud solution—even under Google’s wing. That means customers using AWS, Azure, and Oracle can still rely on Wiz, without lock-in concerns. Google has committed to supporting openness, standards, and partnerships even after the acquisition closes.

Customers can expect tighter integration with Google’s AI-powered offerings, including Security Command Center, Mandiant incident response, and threat intelligence tools.

This isn’t a shutdown or a tuck-in acquisition—it’s a scale-up.

Key Quotes

Sundar Pichai (CEO, Google and Alphabet): “Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”

Assaf Rappaport (CEO, Wiz): “This is an exciting moment for our company, but an even more important one for customers and partners. The acquisition will bolster our mission to improve security and prevent breaches with additional resources and deep AI expertise.”

Big Takeaways

• Wiz was IPO-bound, but the market had other plans.

• The $32B price tag reflects investor confidence in cybersecurity’s future—and Wiz’s central role in it.

• The acquisition is a strategic win for Google Cloud and a historic exit for Wiz.

• Wiz’s core platform and multicloud support will remain unchanged.

Final Thoughts

Wiz’s decision to walk away from the IPO path might seem like a surprise, but it’s a reflection of the current tech landscape. When Google offers $32 billion—and the market for IPOs is shaky—you listen.

The result? One of the largest cybersecurity deals in history, a massive win for Wiz’s investors, and a potential inflection point for cloud security innovation.

And while Wiz won’t ring the Nasdaq bell, it’s certainly ringing in a new era.

FAQs

Why did Wiz abandon its IPO?

Market volatility, antitrust complexity, and a $32B all-cash offer from Google made acquisition the more strategic path forward.

How much was Wiz earning before the acquisition?

By early 2025, Wiz had reached $500 million in ARR and was targeting $1 billion by 2026.

Will Wiz still work on AWS and Azure?

Yes. Wiz will continue to support all major cloud platforms post-acquisition.

When will the acquisition close?

The deal is expected to close in 2026, subject to regulatory approvals.

Wiz Google Acquisition

Wiz Google Acquisition