velera How Credit Union Innovation Can Drive Gen Z Engagement May 2024 Banner

Cloud Security Firm Wiz Valued at $12 Billion After Funding Round

funding

Cloud security startup Wiz has reportedly been valued at $12 billion after raising $1 billion.

Co-founder and CEO Assaf Rappaport discussed the funding in a Tuesday (May 7) interview with the Wall Street Journal (WSJ), saying the company expects this year to be a time of consolidation in the cybersecurity sector. To that end, Wiz intends to use the new financing to fuel acquisitions and product and talent development.

The company in April acquired Gem Security, a cloud detection and response company, the report said, and was planning to purchase cybersecurity startup Lacework. However, Wiz, after a period of due diligence, is reconsidering the value of its offer, a source familiar with the matter told the WSJ.

Wiz, the report notes, is primed to go public at a moment when most startups don’t have an easy path to an initial public offering (IPO).

“Regarding a potential IPO, we are not rushing into it — we have previously indicated that we would move ahead once we reach $1 billion ARR. For now, we intend to continue innovating and providing maximum value to our customers,” Rappaport said.

As PYMNTS wrote last month, there have been signs recently of a “funding thaw” after a prolonged “FinTech winter.”

Data from S&P Global shows pressure on deal making and funding, with FinTechs engaging in 529 funding rounds worth $6.58 billion in the first quarter of 2024. That’s an 18% drop since last year, as measured in the number of funding rounds, and a decrease of 26% year over year in terms of dollar value.

“But as measured sequentially, against the fourth quarter, FinTech funding value was flat, and the deal count grew 13%,” PYMNTS wrote.

“As for the most notable gains, deals tied to banking tech logged $1.8 billion in funding and 72 deals, climbing from $1.7 billion and 62 deals last year. The payments segment remained pressured, as there were 127 rounds, representing $1.4 billion, down from 151 rounds and $3.5 billion in the year ago first quarter.”

Elsewhere on the cybersecurity front, PYMNTS earlier this week examined the growing importance of data security in advance of an upcoming Senate hearing on the topic.

“Data security is paramount in today’s digital age, especially considering the significant volume of personal and sensitive information stored and transmitted electronically,” that report said. “PYMNTS Intelligence found that 82% of eCommerce merchants endured cyber or data breaches in the last year. Forty-seven percent say the breaches resulted in both lost revenue and lost customers.”