US-based Cybersecurity startup Wiz is currently in negotiations to sell existing shares that could value the company as high as $20bn, reports Bloomberg.
These discussions come after Wiz declined a $23bn acquisition offer from Google in July 2024, opting instead for independence with aspirations of a future initial public offering (IPO).
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Wiz’s potential transaction would allow current shareholders to tender between $500m and $700m of their holdings.
The valuation under consideration ranges from $15bn to $20bn, according to sources.
While the company may also raise funds directly from investors, the terms of the offering are subject to change and the deal may not ultimately materialise.
Wiz provides a service that connects to cloud storage providers such as Amazon Web Services and Microsoft Azure, scanning data for security risks.
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By GlobalDataVenture firms involved in the potential share sale include G Squared, Thrive Capital, and Lightspeed Venture Partners, the sources said.
However, representatives from these firms have either declined to comment or have not yet responded to inquiries.
Wiz founder and CEO Assaf Rappaport previously described Google’s acquisition offer as “flattering” but stated a clear preference for steering the company towards an IPO independently.
In a memo, Rappaport said: “While we are flattered by offers, we have received, we have chosen to continue on our path to building Wiz. Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.
“The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”
Concerns about a lengthy regulatory approval process were also factors in turning down the bid from Google.
The offer from Google would have valued Wiz at nearly double its valuation from a fundraising round in May, which stood at $12bn.
That round attracted investors such as Andreessen Horowitz, Lightspeed, and Thrive Capital.
In a move to expand its global presence, Wiz revealed plans in August 2024, to establish its European headquarters in London, with co-founder and head of research and development, Roy Reznik, leading the expansion.
