$20B? $23B? What difference does it make as long as Wiz keeps the headlines rolling

The Israeli cyber unicorn Wiz has been preoccupied with everything except its day-to-day operations in recent months. It all began with leaks about a possible acquisition of SentinelOne, followed by similar rumors about Lacework. Then came a $1 billion fundraising round at a $12 billion valuation from Silicon Valley giants like Andreessen Horowitz, and almost culminated in a failed deal to be acquired by Google for $23 billion. The mere rumor of a sale to Google for such a massive sum catapulted Wiz into the spotlight of the tech and financial media, turning it into the darling of the Israeli government, which eagerly anticipated the billions it would collect in tax revenue.

Wiz founders.

But then came a statement from Assaf Rappaport, the company’s CEO, who said Wiz preferred to grow into a company worth $100 billion and pursue an IPO. This gave the impression that Wiz was done with acquisition talks, IPO rumors, and fundraising news, and just wanted some peace to focus on the actual work. Yet, not long after, another leak emerged—this time about the Insight Partners fund selling Wiz shares in secondary transactions. And now, unsurprisingly, another rumor has surfaced about the sale of shares at a valuation of $20 billion. If such a sale does take place, it would allow investors to cash out hundreds of millions of dollars, ensuring they aren't disappointed by the missed Google deal.

All this has happened in just a few months, not years. The Israeli cyber company, founded by four people, quickly reached a valuation of $12 billion, with an annual sales rate of $500 million. It aims to sell $1 billion worth of services and products so should be focusing on that goal exclusively. Yet, the only news that seems to leak out is about its fluctuating valuation. For a company that still considers itself a startup, this is not the way to build a serious business image with future customers—especially the primary customer Wiz is targeting: the U.S. federal government. To reach $1 billion in sales, Wiz must secure access to the federal government’s highly coveted budgets. We're talking about tens of billions of dollars in potential contracts that Wiz has worked hard to even gain permission to bid for.

However, all the rumors about the company's valuation and shareholders cashing out do not convey the seriousness required to impress government officials who may choose to work with Wiz. The constant fluctuation in valuations and near-deals does not project the image of a mature, business-focused company. Instead, it suggests a company still caught up in media buzz and overly concerned with its valuation.

Assaf Rappaport is not only a talented manager but also a leader whom people follow due to his leadership skills. The way the company is currently operating suggests it may have drifted off course. It’s not too late for him to steer it back on track.