The Israeli cyber startup Wiz announced that it has reached $100 million in annual recurring revenue – and is the “fastest startup in the world” to do so
Almost since its inception, the young Israeli cyber startup Wiz has received criticism. Maybe it’s the title of “the fastest unicorn in the history of Israeli high-tech” maybe it’s the scope of the capital raisings, and maybe it’s the vacation in Mauritius and the glittering Disney party the company held – but the company has been painted more than once as the poster girl of the “bubble”, when according to various reports it records profits of millions of dollars A few only. Today (Wednesday) the startup reveals a new and impressive milestone in its young life.
The $100 million a year club
Wiz, let’s remember, was founded in March 2020 by the group of entrepreneurs who founded Adallom – Ami Lutbek, Yanon Kostika, Roy Reznik and Assaf Rappaport – and sold it to Microsoft 3 years after its establishment. Rappaport continued at Microsoft and managed the company’s Israeli development center, until he retired in 2020 and founded Viz. Almost from the first moment you could see that nothing in Wiz’s way was done “by the book”.
For example, only 9 months after its establishment, it has already raised 100 million dollars. But like the cliché in the army of “start fast and then pick up the pace”, Wiz managed to raise about $600 million in just 18 months, with the most recent round being valued at $6 billion. Among the investors in the company are the funds Sequoia, Index, Insight Partners, Green Oaks, Salesforce and Cyberstarts of Gili Raanan; And among the private investors are Bernard Arnault – the third richest man in the world (as of the writing of these lines); Howard Schultz, the owner of Starbucks and other prominent entrepreneurs.
Now, the company announces that it has reached 100 million dollars in fixed annual revenue – ARR – in only 18 months. According to the company, it is the startup that did it in the shortest time in the world. The importance of this index – specifically in a time of uncertainty like now – is a signal to investors to focus on generating sales and profits. The Bessemer Foundation uses this index to check the progress of its portfolio companies and calls it the “North Star”. However, it is important to remember that this is a private and not public company, so the data is based on its reports only, and we did not get to see confirmation or verification from an external accounting firm. In addition, looking only at the ARR index, without data on the cash burn rate, expenses such as customer acquisition cost, etc. – is only a partial view.
Beyond the heavy capital raisings, the company also jumped in the number of employees from 200 at the beginning of the year to 500 today and its product is used by about a quarter of the Fortune 100 companies.
“If someone is looking to buy us, let them not call”: Assaf Rapaport talks about Wiz and why he left Microsoft
Assaf Rappaport, co-founder and CEO of Wiz, said in response to the announcement: “Many cyber companies today continue to grow rapidly. The slowdown in the markets does not reduce the cyber expenses of large organizations, but the opposite. Many governments are increasing the procurement volumes of cyber technologies, and at the same time applying regulation to a series of organizations, mainly those dealing with critical infrastructures, financial organizations and healthcare organizations that include sensitive information of hundreds of millions of citizens and more. Naturally, Israel is one of the main beneficiaries of the growth in the field, and Wiz will continue to grow at a rapid pace in terms of recruiting brilliant employees in Israel and around the world, as well as rapidly recruiting clients. We have enough money in the coffers to continue to support our growth plan and recruit the best talents.”
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