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Wiz ’s $ 32 billion all - cash attainment by Google parent Alphabet promises a stupendous payday for the cybersecurity startup ’s early - stage investor .
The deal is a big win for Sequoia , one of the best - experience VC firms , which stand up to make $ 3 billion , about 25x the money it invested in the company , Bloomberg account . Despite substantial returns for Sequoia ’s limited partners , their percentage profit will be far less than those of another other maven angel : Israel - based VC Cyberstarts .
Cybersecurity - focused Cyberstarts seat $ 6.4 million from its first $ 54 million fund toward Wiz ’s seed round in February 2020 .
Today that fund owns 4.1 % of Wiz , which means it ’s poised to make a whopping $ 1.3 billion on the tidy sum , according to a somebody conversant with the business firm ’s carrying into action . Cyberstarts also previously sold $ 120 million shares of Wiz in secondary transactions , bringing the fund ’s full rejoinder to $ 1.42 billion — a remarkable 222x return on the original investing .
Cyberstarts also participated in genius ’s later - stage round , investing a total of $ 40 million from its opportunity investment company . Those investments are now deserving $ 128 million , a more minor 3.2x reappearance on endow capital , a person familiar with Cyberstarts ’ operation told TechCrunch .
“ Cyberstarts is going to have one of the practiced return funds in VC history , ” Shai Goldman , a partner at Next Wave NYC , write on X. “ This investiture was done out of their inaugural investment trust , a good monitor that Fund 1 can be amazing one to back as a L-P . ”
When it closed its initiatory investment firm in 2018 , Cyberstarts was n’t an average egress VC managing director . The house was started by Gili Raanan , who previously spend nigh nine days as a Sequoia general partner conduct its Israel investment funds scheme .
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The small $ 54 million store has already achieved a 26x multiple on its modified collaborator majuscule . And that ’s not even reckon other potential outlet , such as Island , a inauguration reportedly raising capital at avaluation of $ 4.5 billion .
Index Ventures , which owns a 12 % stake in Wiz , is poised to make over $ 3.8 billion once the sale is complete , Reuters reported .
