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Cybersecurity startup Wiz is in talks to raise more than $10 billion, underscoring the sector's resilience and signaling a recovery in venture capital markets.
Founded just four years ago, Wiz is in talks with investors including Thrive, Light Speed Venture Partners and G Squared to raise hundreds of millions of dollars, according to people familiar with the matter.
The company may seek to raise nearly $800 million, one of the people said, adding that Sequoia and Israeli cyber venture group Cyberstarts are also in talks to participate in the fundraising.
People cautioned that terms have not yet been finalized, and details could still change or collapse.
Although Wiz has a good cash position, the new funding will help the company fund future acquisitions of another technology group to strengthen its offerings, one of the people said.
Wiz, Thrive, Lightspeed, G Squared, Sequoia and Cyberstarts declined to comment.
Wiz, led by former Microsoft CEO Assaf Rappaport, is focused on providing cybersecurity in the cloud. Earlier this year, the group said it now generates the equivalent of $350 million in annual recurring revenue, a metric typically used by fast-growing startups.
The company also hired Daly Rajic, a former executive at cyber firm Zscaler, as president and chief operating officer to help lead the company toward an eventual initial public offering.
Based in New York and led by Israeli founders, Waze's fundraising, if completed, would also signal the continued strength of Israel's tech sector even in the midst of its war with Hamas.
Rappaport has been among Israel's most outspoken tech executives, protesting last year when Israeli Prime Minister Benjamin Netanyahu sought to curb the country's judicial powers.
Startups have had a tough few years, with rising interest rates making large fundraising rounds more difficult, after becoming widespread during the pandemic.
However, Wiz has continued to raise new funding at a steady pace. Last February, it said it had raised $300 million at a $10 billion valuation in a round led by Lightspeed.
Other previous investors in Wiz include Index Ventures, Greenoaks Capital Partners and Blackstone.
Wiz helps companies secure software built and running in the cloud, at a time when companies are increasingly shifting their software online. The startup said it works with clients including Salesforce, Mars and BMW, and has more than 900 employees.
