Wiz, the cloud security platform, has raised a whopping $1 billion in a Series E funding round, taking its valuation to $12 billion. This marks a significant increase from its previous valuation of $10.3 billion, reflecting the company’s rapid growth and the high demand for its services.
The funding round was co-led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive, and it included a small secondary component of around $30 million to $40 million. The funds will be used to fuel Wiz’s expansion plans, which include hiring more talent, investing in R&D, and making strategic acquisitions.
Wiz’s strategy for growth is twofold. On one hand, it plans to acquire “ex-unicorns,” or startups that were once valued at over $1 billion but have since struggled to maintain their growth trajectory. On the other hand, it’s also targeting “exciting, younger startups” with promising futures.
The company has already started implementing this strategy. It recently acquired Gem Security, a cloud detection and response startup, for $350 million. However, its attempt to acquire another startup, valued at $8.3 billion, fell through during due diligence.
Wiz’s aggressive expansion strategy comes at a time when the cybersecurity sector is experiencing a resurgence. In Q1 2024, cybersecurity startups raised nearly $2.7 billion in 154 deals, marking a 69% increase from the previous quarter.
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