(Bloomberg) – Wiz Backer Sequoia Capital is expected to receive 25 times its invested capital from a cybersecurity startup for sale to Google Parent Alphabet Inc., according to people who know about the matter.
Invested Capital’s multiples are called MOIC based on Sequoia’s approximately 10% stake in Wiz, and Alphabet agreed to buy it for $32 billion in cash. The man said Sequoia would earn about $3 billion from the sale, and the man was reluctant to identify and discuss private information.
Another Wiz supporter, Greenoaks Capital Partners, is expected to receive about $2 billion from the deal, according to an independent person familiar with the matter. Greenoaks invested about $300 million in Wiz, and based on the math, the company’s bet started at 6.67.
Representatives of Sequoia, Greenoaks and Wiz declined to comment.
WIZ will join the Google Cloud business after completing the deal, which will be the largest letter to date. Wiz’s platform is designed to prevent cybersecurity vulnerabilities in the cloud.
“Wiz and Google Cloud protect themselves faster by making organizations of all types and sizes easier, faster, end-to-end, and faster in all major clouds,” Sequoia partner Doug Leone wrote in a blog post Tuesday, wrote in a blog post. “This will help promote the adoption of multi-cloud network security.”
Sequoia and Israeli venture capital firm Cyberstarts brought Wiz a $20 million seed round and participated in other funding rounds, including the so-called Series A with Index Ventures and Insight Partners.
“The team quickly saw that cloud security requires a simpler, agentless architecture to provide a simpler architecture for an increasingly complex digital world,” Leone wrote on Tuesday.
– Assistance with Andrew Martin.
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