Google parent company Alphabet’s $32 billion all-cash acquisition of cybersecurity firm Wiz has triggered a massive windfall for its early investors. While industry giants are seeing significant gains, the standout success story belongs to the Israel-based venture capital firm Cyberstarts, which is set to realize a staggering 222x return on its initial seed investment.
The Anatomy of a 222x Windfall
Cyberstarts’ performance stems from a $6.4 million investment made during Wiz’s seed round in February 2020, sourced from the firm’s inaugural $54 million fund. Today, that specific fund holds a 4.1% stake in Wiz, valued at approximately $1.3 billion following the acquisition announcement.
The total return for Cyberstarts is even higher when accounting for previous secondary market transactions. By selling $120 million in shares earlier, the firm has pushed its total gain to $1.42 billion. This feat cements the fund’s status as one of the most successful in venture capital history, having already achieved a 26x multiple on its limited partner capital—even before considering the potential exits of other portfolio companies like Island, currently valued at $4.5 billion.
Strategic Diversification and Later-Stage Gains
Beyond its seed-stage success, Cyberstarts also participated in later funding rounds for Wiz, committing an additional $40 million from its opportunity fund. These investments have yielded a 3.2x return, currently valued at $128 million. Shai Goldman, a partner at Next Wave NYC, commented on X that the results serve as a powerful reminder of the potential hidden within inaugural venture funds.
The firm’s trajectory is largely attributed to its founder, Gili Raanan. Before establishing Cyberstarts, Raanan spent nearly a decade as a general partner at Sequoia, where he spearheaded the firm’s Israel investment strategy.
Industry-Wide Impact of the Acquisition
While Cyberstarts claims the highest percentage gains, other major players are also securing substantial profits from the deal. Sequoia Capital, a prominent backer, is expected to reap $3 billion—representing a 25x return on its investment, as reported by Bloomberg.
Additionally, Index Ventures—which maintains a 12% stake in the cybersecurity firm—is positioned to earn more than $3.8 billion upon the finalization of the sale, according to Reuters.