The cybersecurity world just witnessed one of its most lucrative exits — and an early investor is reaping massive rewards. Google’s parent company, Alphabet, is acquiring cloud security startup Wiz in an all-cash deal valued at $32 billion, marking one of the largest tech buyouts in recent years.
While global venture powerhouse Sequoia Capital is walking away with billions, it’s Israel-based early backer Cyberstarts that pulled off a once-in-a-generation return.
Cyberstarts initially invested $6.4 million from its first fund into Wiz’s seed round back in February 2020. That early conviction turned into a stake worth around $1.3 billion, according to sources familiar with the firm’s returns. Even more impressive, Cyberstarts had already cashed out $120 million in Wiz shares through secondary sales. Altogether, the firm’s return from this single deal totals a staggering $1.42 billion, translating to a 222x return on that seed investment.
A Historic VC Win Fueled by Deep Cybersecurity Expertise
Cyberstarts didn’t stop at the seed round. The firm doubled down, investing another $40 million from its opportunity fund during Wiz’s later stages. While these later investments also paid off — now valued at $128 million — they delivered a more modest 3.2x return compared to the eye-popping gains from the seed round.
“This is going to be one of the best-performing VC funds in history,” noted Shai Goldman, partner at Next Wave NYC, on X. “It’s proof that even a first-time fund can deliver outsized returns for limited partners.”
Cyberstarts wasn’t just any emerging VC. Founded in 2018 by Gili Raanan, a former Sequoia Capital general partner known for spearheading the firm’s Israel investments, Cyberstarts had deep roots in the cybersecurity sector. That focus clearly paid off.
Today, Cyberstarts’ $54 million inaugural fund is showing a jaw-dropping 26x return — and that’s before counting potential future exits like Island, another cyber startup rumored to be raising at a $4.5 billion valuation.
Sequoia and Index Ventures Also Score Big in Wiz’s $32B Exit
Cyberstarts isn’t the only winner. Sequoia Capital is set to pocket $3 billion, a healthy 25x return on its Wiz investment, Bloomberg reports. Meanwhile, Index Ventures — which holds a 12% stake — is positioned to make $3.8 billion once the Alphabet deal closes, according to Reuters.
Still, the scale of Cyberstarts’ win stands out. For a small fund, turning a $6.4 million bet into over $1.4 billion is the kind of return that transforms reputations and secures future fundraising rounds with ease.
Cybersecurity Proves to Be a Goldmine for Focused Investors
Wiz’s rapid rise and spectacular exit underscore just how lucrative cybersecurity investments have become. With cloud security threats growing, demand for cutting-edge solutions is skyrocketing — and savvy investors who place early bets are cashing in big.
Cyberstarts’ record-breaking return is now setting a new benchmark for venture capital performance. It’s a testament to the power of deep sector expertise, strategic early-stage investing, and staying committed to winning startups.
For limited partners, it’s also a stark reminder: Backing niche, expert-led funds early can sometimes deliver once-in-a-lifetime wins.
