Cybersecurity firm Wiz, a four-year-old company valued at **$12 billion**, is making ambitious moves. Co-founder Roy Reznik recently revealed to CNBC their goal of reaching **$1 billion in annual recurring revenue (ARR)** by 2025, before pursuing a public listing. This announcement comes on the heels of a rejected **$23 billion acquisition bid from Google**, highlighting Wiz’s rapid growth and confidence in its independent trajectory. The company is expanding its international presence, particularly in Europe, with a newly opened London office aiming to capitalize on the burgeoning UK cybersecurity market.
Key Takeaways: Wiz’s Bold Growth Strategy
- Wiz aims to achieve **$1 billion in ARR by 2025**, a significant increase from its current **$500 million ARR**.
- The company recently rejected a **$23 billion acquisition offer from Google**, opting instead for an independent IPO when market conditions are favorable.
- Wiz is aggressively expanding into the UK market, opening a new London office to serve a rapidly-growing customer base and capitalize on the predicted **$30 billion cybersecurity market** driven by cloud adoption.
- The company’s cloud security platform has already achieved impressive growth, reaching **$100 million ARR in just 18 months**.
- Wiz’s **$12 billion valuation** underscores investor confidence in its technology and market position.
Wiz’s meteoric rise and the rejected Google bid
Wiz, founded by four Israeli friends with backgrounds in the elite 8200 intelligence unit of the Israeli army, has experienced explosive growth. The company’s cloud security platform scans cloud storage providers like Amazon Web Services and Microsoft Azure to identify and mitigate security risks. This innovative approach has resonated strongly with businesses, leading to remarkable success. Their achievement of **$100 million ARR in just 18 months** was previously touted as the fastest such growth ever recorded for a software company. This rapid expansion fueled the massive **$23 billion acquisition bid from Google**, which Wiz ultimately declined. According to CEO Assaf Rappaport, the decision to reject the offer was motivated by a belief that **”the startup was better off remaining independent”** and pursuing a public listing instead.
The rationale behind the rejection of Google’s acquisition bid
While the **$23 billion acquisition bid** was undoubtedly enticing, Wiz’s leadership clearly valued the potential for even greater independent growth. They believe that a public listing will further enhance their market visibility and access to capital while allowing them to maintain control over their strategic direction. The decision highlights the confidence of Wiz’s leadership in the long-term potential of their technology and business model.
International expansion: Focusing on the UK
Wiz’s ambitions extend beyond its remarkable success in the US market. The company is actively expanding its global footprint, with a significant focus on Europe. Currently, **35% of Wiz’s revenue originates from Europe**, indicating a substantial international presence already. This strategic expansion has led them to open their first European office in London.
The UK’s attractive cybersecurity market
Reznik highlighted the UK as a key market for Wiz, citing the high concentration of talent and the thriving tech ecosystem. Recent noteworthy cybersecurity incidents in the UK, such as the **cyberattacks on National Health Service hospitals and Transport for London**, have heightened awareness of cybersecurity risks and increased demand for solutions like those offered by Wiz. Reznik predicts the overall cloud market will reach **$1 trillion in the coming years**, with a substantial **$30 billion cybersecurity sector** within it. This provides a significant opportunity for Wiz to capture a substantial share of the market.
Success and growth in UK
Wiz has already established notable clients within the UK, including major players such as **ASOS and Revolut**. However, Reznik emphasizes that this is just the beginning, suggesting that there is **“huge potential for growth”** within the UK market. The company’s expansion into the UK is a strategic move to tap into the increasing demand for robust cloud security solutions in a highly regulated and security-conscious environment.
Wiz’s future: A public listing and beyond
While Wiz has attracted substantial venture capital funding, reaching **$1.9 billion in total investment**, including a **$1 billion funding round at a $12 billion valuation** in 2024, the company remains focused on organic growth. Reznik suggests they’ve received numerous offers to acquire the company but reiterates their preference for an independent public listing. The **$1 billion ARR target for 2025** serves as a key milestone before they launch an IPO. This ambitious target demonstrates Wiz’s unwavering confidence in its platform and its ability to remain a dominant player in the ever-evolving cybersecurity landscape.
The road to an IPO
The path to a successful IPO will involve continued innovation, expansion into new markets, and the maintenance of strong relationships with existing and prospective clients. Wiz will likely continue to improve its platform, adding features and capabilities to address evolving threats and customer needs. The company’s commitment to maintaining a leading position in a rapidly-changing market will be crucial for a successful public debut. Ultimately, the timing of the IPO will depend on various factors, including market conditions and internal readiness. Reznik’s statement that they will go public “**when the stars align**” highlights a commitment to maintaining stability and strategic positioning before entering the public market.
In conclusion, Wiz’s journey from a startup founded by friends in the Israeli army to a rapidly-growing global cybersecurity leader is nothing short of remarkable. With its ambition to achieve **$1 billion in ARR** and its strategic expansion into the UK, Wiz has positioned itself as a significant force in the cybersecurity industry and is setting the stage for a potentially groundbreaking IPO.
