Google parent in talks to buy cyber security startup Wiz for $23B

ft.com

10 points·supermatou··9 comments

How does a 4 year old company get a total of $2B in VC funding?

Cloud and containers are by no means new. They aren’t first or even the 100th company to try this.

This is utter insanity.

I don’t understand what Google’s goal is here? Wiz is a multi cloud security offering. A Google purchase will immediately start turning the company into a GCP focused offering.

If they want to improve GCP’s security offering…sure, maybe.

But that is going to destroy a lot of value in the company up front and it’s not like their engineers can’t replicates Wiz for GCP for a lot less than $23b.

Something something multicloud?

For those unable to bypass FT's paywall:

https://archive.is/6LZap

Isn't a $23B valuation on $350M/ARR a bit high?

It’s funny, 2% investment return would beat that, while also avoiding the costs of keeping executives and 1000 employees.

They have crazy growth. They reached $100M/ARR in 18 months, and 3.5 times that in less than 24 months more, so around 85% growth YoY. This is a purchase for future potential, not current earnings

> This is a purchase for future potential, not current earnings

Clearly, but 85% YoY growth is obviously not sustainable in the long term.

Sounds like an absurd overvaluation compared to recent acquisitions of software companies I can think of.

No, but it's still a ridiculous YoY at this scale. Wiz is the fastest company to ever reach $100M ARR and still have a lot of growth left in them.

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