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Wiz's $33 Billion Google Acquisition: A Landmark Israeli Startup Success Story
In March 2025, Google's parent company Alphabet acquired Israeli cybersecurity startup Wiz for $33 billion in cash - the largest exit in Israel's tech history. This landmark deal showcases the immense potential of investing in Israeli startups, particularly those with unicorn potential.
Wiz's Meteoric Rise to Success
2020: Founded During Pandemic
Established by four veterans of Israel's elite military intelligence units, capitalizing on the global shift to cloud infrastructure.
2021: Achieved Unicorn Status
Reached $1 billion valuation after raising $195 million, ranking 90th on EquityBee's most sought-after unicorns list.
2023: $10 Billion Valuation
Raised $300 million led by Lightspeed Venture Partners, Greenoaks, and Index Ventures.
2024: $12 Billion Valuation
Secured $1 billion in funding led by Andreessen Horowitz. Acquired Gem Security ($350M) and Dazz ($450M).
March 2025: $33 Billion Acquisition
Acquired by Google, surpassing Intel's $15.3 billion Mobileye acquisition as Israel's largest tech exit.
The Founders Behind Wiz's Success
Assaf Rappaport (CEO)
Veteran of Israel's elite military intelligence Unit 8200. Previously co-founded Adallom, which sold to Microsoft for $320 million in 2015. His leadership drove Wiz's rapid growth and strategic vision.
Yinon Costica (VP Product)
Military intelligence veteran who co-founded Adallom with Rappaport. His product expertise helped shape Wiz's cloud-native application protection platform that attracted Fortune 100 clients.
Ami Luttwak (CTO) & Roy Reznik (VP R&D)
Both graduates of elite military programs who brought technical expertise from Adallom. Their innovation in AI-powered cloud security created Wiz's market-leading technology.
Financial Outcomes of the Acquisition
$2-3B
Founder Earnings
Each of the four founders, holding approximately 10% of Wiz's shares, earned between $2-3 billion from the acquisition.
320x
Return on Investment
Cyberstarts VC fund invested $6 million in seed funding and netted over $1.32 billion - a 320x return in just four years.
$4B
Tax Revenue
The deal is expected to generate $2.5-4 billion in taxes from founders and employees, significantly boosting Israel's economy.
Wiz's 1,800 employees will receive substantial "sale and retention" bonuses, with senior staff potentially earning millions and junior employees hundreds of thousands. Early investors like Sequoia Capital, Index Ventures, and Insight Partners secured significant payouts.
Why Israel Produces So Many Unicorns

Global Market Focus
Israeli startups target international markets from day one
Mature VC Ecosystem
276 active VC funds with strong government support
Elite Talent Pool
Military units like 8200 train top-tier tech talent
Innovation Culture
Highest R&D expenditure as percentage of GDP globally
Israel has produced over 100 unicorns, ranking second globally per capita, with 95 tech unicorns by May 2024. In 2021 alone, 33 companies achieved unicorn status. Sectors like cybersecurity, fintech, and enterprise IT dominate, raising billions in funding annually.
Benefits of Investing via VC Funds Targeting Israeli Unicorns
Access to High-Growth Opportunities
VC funds like Cyberstarts specialize in identifying early-stage startups with unicorn potential, leveraging specialized networks to bootstrap portfolio companies and enhance success rates.
Diversified Risk
Investing in a VC fund spreads risk across multiple startups, mitigating the impact of failures while capturing outsized returns from successes like Wiz's 320x return.
Amplified Returns
Early investments in unicorns yield exponential returns, as demonstrated by Cyberstarts' $6 million seed investment in Wiz growing to $1.2 billion.
Strategic Expertise
VC funds provide portfolio companies with mentorship, market access, and strategic guidance, increasing the likelihood of successful exits or IPOs.
Risks and Considerations for Investors
Geopolitical Instability
The October 7, 2023 conflict and judicial reform concerns led some startups, including Wiz, to divert funds abroad, highlighting regional risks.
Market Saturation
Cybersecurity is highly competitive, with giants like Palo Alto Networks posing challenges. Successful startups must differentiate effectively.
Regulatory Hurdles
The Wiz deal faces a lengthy regulatory review, reflecting potential delays in exits that investors must consider.
Valuation Bubbles
Sky-high valuations, like Wiz's $12 billion in 2024, raise concerns about sustainability and potential market corrections.
Key Lessons from Wiz for Investors
Bet on Proven Founders
Wiz's founders' prior success with Adallom attracted top-tier investors, underscoring the value of backing serial entrepreneurs with track records of success in their domain.
Focus on High-Growth Sectors
Cybersecurity's global demand, driven by cloud adoption, made Wiz a prime acquisition target. Investors should prioritize sectors with strong market tailwinds and growing demand.
Early-Stage Investment Pays Off
Cyberstarts' seed investment yielded the highest returns at 320x, emphasizing the importance of early bets on promising startups with strong founding teams.
Leverage VC Expertise
Funds with deep industry knowledge, like Cyberstarts in cybersecurity, maximize returns through strategic support and connections that accelerate growth.