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Google-Wiz deal fizzles out, company will pursue IPO

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Re: Google-Wiz deal fizzles out, company will pursue IPO

#121

Post by dinobones »

mihaic wrote: post #110

Over a certain threshold, all software companies seem to degenerate into sales companies. Honestly, I'm just mildly shocked of the $23B valuation for a product that I'd expect to have taken waaay less than 1% of that in dev costs. What I'm more shocked is that Google decided they can't build the same thing themselves. Maybe I don't understand the complexity of the product?

Apparently they’re used by 40% of the Fortune 100.

At a generous 20xARR valuation this is still 1b ARR.

1 billion / 40 = annual revenue of $25M from each contract.

Hwat. Help it make sense.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#123

Post by underdeserver »

dinobones wrote: post #121
mihaic wrote: post #110

Over a certain threshold, all software companies seem to degenerate into sales companies. Honestly, I'm just mildly shocked of the $23B valuation for a product that I'd expect to have taken waaay less than 1% of that in dev costs. What I'm more shocked is that Google decided they can't build the same thing themselves. Maybe I don't understand the complexity of the product?

Apparently they’re used by 40% of the Fortune 100. At a generous 20xARR valuation this is still 1b ARR. 1 billion / 40 = annual revenue of $25M from each contract. Hwat. Help it make sense.

They probably have customers outside Fortune 100.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#124

Post by sofixa »

llm_trw wrote: post #114
nothrowaways wrote: post #27

23B is a staggering number for a 4 year old cyber security startup with 900 employees

That's 800 employees too much. The reason why tech sucks these days is because everyone over hires and empire builds.

Too much to build the product, but you need researchers (check out their blog), marketing, sales, solutions engineers, support, legal, accountants, etc.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#125

Post by underdeserver »

trhway wrote: post #119

Israel's GDP is $500B+ . So Google's offer would bring 4%+ of one year's GDP into Israel. And these guys refused it. One can wonder what the government would think here :)

Thankfully, Israel is a free country and the government can't force you to sell.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#126

Post by ncruces »

boguscoder wrote: post #58
SJC_Hacker wrote: post #44

Earlier quoted context omitted.

I've been waiting for the Silly Valley insanity to stop for about the past 15 years, but its like its been permanently stuck in 1999 mode. With a few brief hiccups like Juicera and Theranos. I guess VCs just don't have anything better to do with their money, than throw it at a wall of shit and see what sticks

Im afraid its been 25 not 15 years since 1999 ;(

Whoosh… that's the entire point you missed right there.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#127

Post by underdeserver »

llm_trw wrote: post #114
nothrowaways wrote: post #27

23B is a staggering number for a 4 year old cyber security startup with 900 employees

That's 800 employees too much. The reason why tech sucks these days is because everyone over hires and empire builds.

That's a big claim. Have you seen their product? It's basically a collection of 10-15 distinct cloud security products - CDR, data classification, vulnerability scanning, asset inventory, etc. etc. etc. all working together.

Each one of these is a 50-person company on its own.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#128

Post by underdeserver »

chii wrote: post #28
mrinfinitiesx wrote: post #9

Sometimes it's not about the money, it's actually about systems security and the level of which you actually want to build, deploy, and protect great products and infrastructure. 23 billion is a LOT of money. Looking forward to see how the IPO plays out.

> Sometimes it's not about the money it's always about the money.

Well, Wiz's founders reportedly made $10-$30 million each on the Adallom sale. It might be about the money but it's not like they need it.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#129

Post by golemiprague »

chatmasta wrote: post #35
walterbell wrote: post #32

Earlier quoted context omitted.

https://old.reddit.com/r/cybersecurity/comments/1c1s9r2/wiz_... > Wiz combines a graph search for asset management with agentless vuln and malware scanning that clones EBS volumes and scans them on their infrastructure. That's a great combo for vuln management, but has some downsides like delays between scans and cloud costs. They have a sensor with solid detection rules, and are okay at a bunch of other stuff like c…

> clones EBS volumes and scans them on their infrastructure Crowdstrike: “you just install a kernel module with ring zero access and we’ll make sure you’re protected” Wiz: “hold my Red Bull…”

From the explanation here it sounds completely opposite concept, they download the server and check it rather than doing the checks on production environment

Re: Google-Wiz deal fizzles out, company will pursue IPO

#130

Post by trhway »

qeternity wrote: post #122
trhway wrote: post #119

Israel's GDP is $500B+ . So Google's offer would bring 4%+ of one year's GDP into Israel. And these guys refused it. One can wonder what the government would think here :)

Most of the shareholders are not in Israel.

You seem to be half-way right. Wiz took 1.9B total. The last 1B was on $12B valuation and the previous rounds, except series A where i don't see data, were also under 10%. So, yes, the investors probably own about a half.
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