Wiz secures $1B in funding at a $12B valuation to enhance its cloud security platform through acquisitions

Wiz, a rapidly growing startup focused on creating an all-in-one cloud security platform, has recently secured a substantial $1 billion in a Series E funding round. This round was co-led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive, and it values Wiz at an impressive $12 billion, positioning it as one of the most highly valued startups in the cybersecurity industry today.

This funding represents a significant increase from Wiz’s previous round in February 2023, where it raised $300 million at a $10.3 billion valuation. Initial rumors in March suggested the new round would be $800 million, but the final amount reflects heightened investor interest and activity around Wiz. One investor even described the company as “iconic.”

The Series E round also includes a small secondary component, estimated to be between $30 million and $40 million, according to sources close to the deal.

Assaf Rappaport, Wiz’s co-founder and CEO, highlighted that the company intends to use the funds to fuel both organic growth through hiring and R&D investments and inorganic growth through acquisitions. With many cybersecurity startups in the market, Wiz sees significant opportunities to acquire other companies to rapidly integrate their customers, talent, and technology.

Rappaport noted two types of acquisition targets: “ex-unicorns” — startups that have previously raised substantial funds and achieved valuations over $1 billion but have struggled to maintain expected growth — and promising younger startups with strong potential. This approach will allow Wiz to expand its capabilities and market presence swiftly.

The large size of the funding round gives Wiz the flexibility to make cash acquisitions, which can help preserve equity and strengthen its position ahead of a potential public listing.

Overall, this funding round marks a pivotal moment for Wiz, providing the resources to accelerate its growth trajectory and solidify its position in the cybersecurity landscape.