Rappaport, the CEO of cybersecurity startup Wiz, recently made headlines when he turned down a staggering $23 billion acquisition offer from Alphabet, Google’s parent company. This decision, which surprised many in the industry, was made by Wiz’s management team with the support of their investors, who believed that remaining independent was the best choice for the company’s future.
Wiz, based in New York, was founded in 2020 by four former Israeli military officers who had previously co-founded a cloud cybersecurity company called Adallom. Adallom was later acquired by Microsoft for $320 million, showcasing the founders’ expertise and success in the field. Each of the founders, including Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak, reportedly owns 9% of Wiz. The company’s venture backers include prominent names like Index Ventures, Sequoia Capital, and Thrive Capital.
In an email sent to Wiz’s 1200 employees worldwide, Rappaport expressed his confidence in the decision to reject the acquisition offer. He emphasized the exceptional team at Wiz and their ability to continue on their path of building a successful company. Rappaport also revealed their ambitious goals of reaching $1 billion in annual recurring revenue (ARR) and eventually pursuing an initial public offering (IPO).
The market validation that Wiz has experienced following the news of their refusal only strengthens their determination to create a platform that is loved by both security and development teams. This acknowledgement from employees, investors, and customers is a testament to the faith they have in Wiz’s vision of becoming the world’s leading cybersecurity company.
Rappaport concluded his email by expressing gratitude for the hard work and focus demonstrated by the employees during this intense period. Their dedication has allowed Wiz to stay on track and finish the quarter stronger than ever. Rappaport’s final words, “LFG,” which stands for “let’s freaking go,” reflect the team’s enthusiasm and determination to continue pushing forward.
By turning down such a significant offer, Wiz has demonstrated their belief in their own potential and their commitment to building something remarkable. This decision not only showcases the confidence of the management team and investors but also highlights the growing importance of cybersecurity in today’s digital landscape. As cyber threats continue to evolve, companies like Wiz play a crucial role in protecting sensitive data and ensuring the security of online platforms. With their exceptional team and ambitious goals, it will be fascinating to see how Wiz progresses in the coming years.
