The Incredible 200x Return on a $6M Bet - How Cyberstarts Turned a Seed Investment in Wiz into a $1.4 Billion Payday

When cybersecurity startup Wiz was acquired by Google's parent company Alphabet for a massive $32 billion, it represented a colossal payday for the company's early investors. But one VC firm in particular, Cyberstarts, managed to turn a relatively small $6.4 million seed investment into an astounding $1.4 billion return - a mind-boggling 222x multiple.

Cyberstarts, a cybersecurity-focused venture capital firm founded by former Sequoia general partner Gili Raanan, invested in Wiz's seed round back in February 2020. That initial $6.4 million stake has now ballooned to a 4.1% ownership position worth $1.3 billion thanks to the Google acquisition.

But the firm's massive returns don't stop there. Cyberstarts also previously sold $120 million worth of Wiz shares in secondary transactions, bringing the total return on its Wiz investments to a staggering $1.42 billion. That's a remarkable 222x return on the original $6.4 million seed investment.

Even the firm's later-stage investments in Wiz's subsequent funding rounds, totaling $40 million, have turned into a more modest but still impressive 3.2x return, now valued at $128 million.

This kind of outsized return is virtually unheard of in the venture capital world, where even 10x or 20x returns are considered exceptional. Cyberstarts' massive payday on Wiz is a testament to the firm's keen eye for identifying promising cybersecurity startups early on, as well as the incredible growth trajectory of Wiz itself.

As Shai Goldman, a partner at Next Wave NYC, noted on X: "Cyberstarts is going to have one of the best returning funds in VC history. This investment was done out of their inaugural $54 million fund, a good reminder that Fund 1 can be amazing one to back as an LP."

The Wiz acquisition is just the latest example of Cyberstarts' Midas touch. The firm's inaugural $54 million fund has already achieved a remarkable 26x multiple on its limited partner capital, and it also counts the $4.5 billion-valued startup Island among its portfolio companies.

While Sequoia and other prominent VCs are also set to reap substantial rewards from the Wiz deal, Cyberstarts' returns stand out as truly exceptional. This incredible 200x-plus outcome on a relatively small $6 million bet is a testament to the firm's investment acumen and the transformative potential of the cybersecurity industry.