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The biggest VC winners in the $32 billion Google-Wiz Deal

Assaf Rappaport, CEO of Wiz, at Web Summit 2021 in Lisbon, Portugal.
  • Google acquired cybersecurity startup Wiz for $32 billion in its largest acquisition ever.
  • The deal highlights the AI boom's impact on the value of cybersecurity companies.
  • VC firms like Sequoia Capital, Insight Partners, and Index Ventures are set for a huge payout.

After much anticipation and a near-deal last summer, Google is finally buying Wiz for $32 billion in cash, marking its biggest acquisition ever just months after an earlier deal collapsed over regulatory concerns. And a handful of Silicon Valley's most prominent VCs will cash out on the deal in a big way.

Firms like Sequoia Capital, Insight Partners, and Index Ventures, backed Wiz early—and doubled down on the company as its valuation soared. Others came in at later rounds: Lightspeed Venture Partners co-led Wiz's $300 million Series D and $1 billion Series E.

"The team hit on the insight that cloud security needed a simpler, agentless architecture for an increasingly complex digital world," Douglas Leone, a Sequoia Capital partner who co-led Wiz's seed round, wrote on LinkedIn. "Once the vision for Wiz became clear, there was no stopping them."

Tuesday's acquisition is the biggest ever for Alphabet, Google's parent company, eclipsing its $12.5 billion purchase of Motorola Mobility in 2012.

The sheer size of the deal highlights how the AI boom is driving up the value of other technologies like cybersecurity. Alphabet's cloud computing and security businesses, key areas where the company has lagged behind rivals in the AI race, stand to benefit the most from the acquisition.

Shardul Shah, a partner at Index Ventures who co-led Wiz's Series A round of funding, thinks that the startup situated itself precisely at the nexus of core technological needs: "Wiz is a once-in-a-generation company, positioned at the powerful intersection of three transformational trends—AI, cloud, and security," Shah wrote to BI. "By joining forces with Google, Wiz will accelerate innovation for customers globally."

Wiz's business was booming in the months before the Google deal. As of July 2024, around the time the first deal fell apart, Wiz surpassed $500 million in annual recurring revenue and forecast it would clear $1 billion in ARR by mid-2025, The Information reported. Tuesday's acquisition price values Wiz at 32 times its projected revenue for the year—well above multiples typical of publicly traded cybersecurity companies.

Google expects the deal to close in 2026, pending regulatory approval, according to an SEC filing.

Although President Donald Trump has pushed to boost M&A during his administration, Vice President JD Vance has supported tighter dealmaking regulations, including legislation to get rid of tax breaks for corporate mergers. This stance could complicate the Wiz-Google deal. Google is also in the middle of two antitrust lawsuits, including one against its search business from Trump's first term.

Here's a list of some of the biggest names in Silicon Valley that could cash out big following the closing of the acquisition, according to data from PitchBook:

InvestorRoundDateDeal SizeWiz's Valuation at Round (Post-Money)
Sequoia CapitalSeedFebruary 2020$21 millionUndisclosed
CyberStartsSeedFebruary 2020$21 millionUndisclosed
Insight PartnersSeries ADecember 2020$100 million$500 million
Index VenturesSeries ADecember 2020$100 million$500 million
Cerca PartnersSeries ADecember 2020$100 million$500 million
Greenoaks Capital PartnersSeries BMarch 2021$130 million$1.7 billion
Advent InternationalSeries BMarch 2021$130 million$1.7 billion
Index VenturesSeries BMarch 2021$130 million$1.7 billion
Sequoia CapitalSeries BMarch 2021$130 million$1.7 billion
Insight PartnersSeries BMarch 2021$130 million$1.7 billion
CyberStartsSeries BMarch 2021$130 million$1.7 billion
Insight PartnersSeries COctober 2021$250 million$6 billion
Greenoaks Capital PartnersSeries COctober 2021$250 million$6 billion
Sequoia CapitalSeries COctober 2021$250 million$6 billion
Index VenturesSeries COctober 2021$250 million$6 billion
Salesforce VenturesSeries COctober 2021$250 million$6 billion
Howard SchultzSeries COctober 2021$250 million$6 billion
G SquaredSeries COctober 2021$250 million$6 billion
BlackstoneSeries COctober 2021$250 million$6 billion
Bernard ArnaultSeries COctober 2021$250 million$6 billion
Lightspeed Venture PartnersSeries DFebruary 2023$300 million$10 billion
Greenoaks Capital PartnersSeries DFebruary 2023$300 million$10 billion
Index VenturesSeries DFebruary 2023$300 million$10 billion
Thrive CapitalSeries EMay 2024$1 billion$12 billion
Inflection VenturesSeries EMay 2024$1 billion$12 billion
GreylockSeries EMay 2024$1 billion$12 billion
BOND CapitalSeries EMay 2024$1 billion$12 billion
Andreessen HorowitzSeries EMay 2024$1 billion$12 billion
Lightspeed Venture PartnersSeries EMay 2024$1 billion$12 billion
Read the original article on Business Insider
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Djokovic player union launches legal blitz against governing bodies

MIAMI GARDENS, United States — A tennis union co-founded by Novak Djokovic on Tuesday announced a series of legal actions aimed at the sport's governing bodies, alleging "anti-competitive restraints and abusive practices".

The Professional Tennis Players' Association (PTPA) said it was suing both tour organisers, the Association of Tennis Professionals (ATP) and the Women's Tennis Association (WTA).

The International Tennis Federation (ITF), and International Tennis Integrity Agency (ITIA) were also named as defendants in a series of actions in the United States, United Kingdom and the European Union.

Both the ATP and WTA responded by vowing to defend themselves against the claims with the men's tour saying the PTPA has "consistently chosen division and distraction through misinformation over progress".

The PTPA was set up by Djokovic and Canadian Vasek Pospisil in 2020. Some 20 players were named as part of at least one of the actions.

"The lawsuits expose systemic abuse, anti-competitive practices, and a blatant disregard for player welfare that have persisted for decades," said the PTPA statement.

"The ATP, WTA, ITF, and ITIA operate as a cartel by implementing a number of draconian, interlocking anti-competitive restraints and abusive practices."

"Tennis is broken," said Ahmad Nassar, executive director of the PTPA.

"Behind the glamorous veneer that the defendants promote, players are trapped in an unfair system that exploits their talent, suppresses their earnings, and jeopardises their health and safety."

The statement listed alleged abuses they are targeting.

It said the defendants "colluded", "fixing prize money and suppressing player earnings" forcing "an unsustainable schedule" and exploiting players financially.

The bodies show a "disregard for players" by making them "compete in 100-degree [Fahrenheit] heat, endure matches that ended at 3 am, and play with different and injury-inducing tennis balls".

The PTPA also cited image right ownership, sponsorship restrictions and the "draconian system of ranking points".

The statement also complained that tennis violates player "privacy rights".

'Division and distraction'

 

"Players are subjected to invasive searches of personal devices, random middle-of-the-night drug tests, and interrogations without legal representation," it said.

The ATP said it was continuing to make change, with player input and hit back at the union.

"While the ATP has remained focused on delivering reforms that benefit players at multiple levels, the PTPA has consistently chosen division and distraction through misinformation over progress," the statement read.

"Five years on from its inception in 2020, the PTPA has struggled to establish a meaningful role in tennis, making its decision to pursue legal action at this juncture unsurprising.

"We strongly reject the premise of the PTPA's claims, believe the case to be entirely without merit, and will vigorously defend our position. The ATP remains committed to working in the best interests of the game - towards continued growth, financial stability, and the best possible future for our players, tournaments, and fans," the tour concluded.

The WTA also defended their approach to the game and said that PTPA's action "is both regrettable and misguided, and we will defend our position vigorously in due course".

The ITAI said sport required robust anti-doping and anti-corruption programmes and said it was proud of it's role.

"The ITIA seeks to uphold the highest standards in our work, following best practice and appropriate rules throughout the management of cases, from intelligence gathering through to investigations and, where applicable, sanctions.

For our part, we continue to welcome opportunities to engage with any and all members of the sport, including players, coaches, support staff, officials, and media, to build trust in tennis' anti-doping and anti-corruption programmes".

In addition to Djokovic and Pospisil, the seven-member PTPA executive council also includes players, Hubert Hurkacz, Ons Jabeur, Bethanie Mattek-Sands, Taylor Townsend and Zheng Saisai.

Australian Nick Kyrgios, France's Varvara Gracheva and American Reilly Opelka have joined the PTPA's case in the United States, while Frenchman Corentin Moutet and Japan's Taro Daniel have joined the case in the United Kingdom.

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