Wiz Investor reveals Google’s $32B acquisition

Google closed its acquisition of $ 32 billion of cybersecurity company Wiz this week – the largest acquisition in Google history, and the largest acquisition of a business-backed startup.

On the latest episode of TechCrunch’s Equity podcastRebecca Bellan, Sean O’Kane, and I were joined by Shardul Shah, a partner at Wiz’s largest shareholder Index Ventures. Shah runs through his history with Wiz, which extends beyond Wiz himself – he supported Adallom, a startup founded by Wiz’s Assaf Rappaport, Ami Luttwak, and Roy Reznik.

We also asked Shah about why he thinks the company is the one he wants to buy, and how he responded to Wiz’s rejection of Google’s previous offer.

“No wonder it’s the Wiz,” Shah said. “Wiz is at the center of three waves: AI, cloud, and security investment.”

Read part of our interview, edited for length and clarity, below. Shah kicked things off by noting, jokingly, that we may have been selling things a little too late by calling acquisition one of our weekly activities.

Shardul Shah: I think this should be a year or ten, not just a week. Can we change that? Thank you.

But it is very important for the industry. This is the largest business-backed acquisition in history.

Rebecca Bellan: Yes, we will fix this post (-make).

Shardul: And most critically, it’s no surprise that it’s Wiz. Wiz is at the center of three trends: AI, cloud, and security investments. And these are at the center today in terms of the AI ​​era where every job needs to be protected. So we are proud to have been a major shareholder in the company. And yes, I think it’s part of the month.

Rebecca: So how long has it been? When did you invest in Wiz? Because this is the kind of exit that I’m sure investors dream about.

Shardul: It’s six or 16 years old, it’s a question for us inside. About 10 years ago, I joined Assaf, Roy, and Ami’s first company, Adallom. So we have a front seat to how they make decisions, how they develop trust and how it’s changed over time.

Assaf called me on my birthday when he started Wiz. And the crop cycle is when I joined the board.

Anthony Ha: So, we’ve talked about this partnership a few times before on the show, but because Wiz is not a consumer-focused company, I think some of our readers know about it, some don’t. Can you talk a little bit more about what it was – beyond just lining up these important parts – that you think made The Wiz such an attractive investment and ultimately such an interesting acquisition?

Shardul: At Index, the core of our business is focusing on people. And I think really the basis of the acquisition was the people. Assaf is this amazing leader who can make great calls. He has great knowledge about people and markets. Two of the founders, Ami and Yinon (Costica), are almost always in conflict – Ami is in the future, (Yinon) is more, present and Assaf has the ability to make a decision on which word, at which time, to lead the way. Roy is a killing machine.

So together, they created this environment with a culture of trust that allowed them to build a platform from the journey and take the existing group with an unparalleled speed.

Sean O’Kane: There is this interesting history – interesting to us, mainly because we had to do it pushed them at Disrupt a few years agowhere Google approached the company and (Assaf) actually walked away from the contract. At that moment, does that feel like a confirmation to you, as someone who feels like you’ve found someone you trust and is willing to take a step that I think a lot of people would be afraid to take, in the face of a big, at that time, coming out? Maybe not as big as now, but very close.

Shardul: Not really. Some of that is probably because I’m so disrespectful and external validation doesn’t matter, even my insecurities about you describing this as a weekend job.

I told the founders once, I think I believe in them more than I believe in myself. The first blog I ever wrote for Index was called “Learning to Say No,” actually targeted at Audible founders. (…) When founders choose and make decisions, you trust the input, as they make decisions. You don’t just focus on the output and the chances that it goes if it’s confirmed or not.

Rebecca: How important was it to finding Wiz? Basically, that it is getting what it can get from Google – money, access to (Google’s) cloud, etc., but still manages to maintain its leadership?

Shardul: So, perhaps for the audience, Wiz wants to protect the cloud infrastructure and code in the production. Many of their customers are in what is called the zero critical club, they have a story to tell about what to prioritize and what to do. Google’s resources, infrastructure, AI talent that they have, allow Wiz to expand this awareness and maintain this culture of trust and interaction.

Anthony: When we think about things that need to be acquired, they can be important in different ways. It could be a turning point for the acquiring company. They can also be flexible to the startup environment because there are many people who have made a lot of money on this. And then it can start new industries, new startups.

So when you think about big purchases, what do you think will happen in the next few years?

Shardul: I think it starts with inspiration. I think there is a new perspective on what is possible for entrepreneurs around the world. And it’s amazing, right?

I am proud that there are many people whose lives will change as a result of this investment, which is really meaningful and satisfying. But I think the most important thing is the skills, abilities, and ambitions of entrepreneurs. So we can’t wait to see what the limits are for the next generation.