Wiz eyes $20 billion valuation in potential $500-$700 million share sale

Israeli cybersecurity decacorn Wiz is exploring a potential sale of existing shares at a valuation ranging from $15 billion to $20 billion, Bloomberg News reported on Tuesday.

The company is talking about a transaction that would let existing shareholders tender from $500 million to $700 million of their holdings, the report added, citing people familiar with the matter.

Wiz logo.

Earlier in July, Wiz ended talks with Google-parent Alphabet on a proposed $23 billion deal, a valuation that nearly doubled what the cybersecurity firm announced in May, when it raised $1 billion in a private funding round.

Venture firms involved in the potential deal include G Squared, Thrive Capital and Lightspeed Venture Partners, the report also said.

The company and the venture firms did not immediately respond to requests for comment.

Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, powered by artificial intelligence.

Last week, it was reported that private equity firm Insight Partners is using a private equity-style structure to sell more than $1 billion worth of stakes in startups and to free up cash to return to investors, with one of the startups being Wiz. According to the Financial Times, the VC has established a continuation fund that enables LPs to sell their stakes in portfolio companies to other investors, while allowing Insight to keep its ownership in the underlying company.

Wiz raised $1 billion at a $12 billion valuation earlier this year and is targeting $1 billion in sales as it prepares for an IPO on Wall Street. The company, which rejected a $23 billion buyout offer from Google last month, currently employs over 1,200 people across Israel, the United States, Europe, and Asia, and last year established an office in Washington, D.C., dedicated to working with the U.S. public sector.