In a remarkable turn of events, Cyberstarts, a venture capital firm established by Gili Raanan, has achieved unprecedented success through its investment in Wiz. Founded in 2018, Cyberstarts was not an ordinary emerging VC manager, and its strategic moves have paid off tremendously. The firm initially invested $6.4 million from its inaugural $54 million fund into Wiz's seed round in February 2020. This decision has now positioned Cyberstarts to earn a staggering $1.3 billion, showcasing a return on investment of 222x.
Cyberstarts' journey with Wiz did not stop at the seed round. The firm continued to support the cybersecurity company by participating in later-stage rounds, investing a total of $40 million from its opportunity fund. This strategic involvement has allowed Cyberstarts to sell $120 million worth of Wiz shares in secondary transactions, resulting in a total return of $1.42 billion.
"Cyberstarts is going to have one of the best returning funds in VC history," said Shai Goldman, a partner at Next Wave NYC.
The success of Cyberstarts is not only a testament to its strategic investments but also a significant win for Sequoia Capital. Sequoia, one of the most renowned VC firms globally, stands to gain approximately $3 billion from Wiz's sale. Sequoia's investments in Wiz, now valued at $128 million, reflect a return on invested capital of 3.2x, further solidifying its position as a leader in venture capital.
Index Ventures, holding a 12% stake in Wiz, is also poised to benefit substantially from the sale. The venture capital firm's share is estimated to bring in over $3.8 billion once the transaction concludes.
Cyberstarts' $54 million fund has already achieved a remarkable 26x multiple on its limited partner capital, underscoring the firm's strategic acumen and investment prowess. With a 4.1% ownership stake in Wiz, Cyberstarts' decision to back the company early on has proven to be one of the most lucrative moves in venture capital history.