The path to scaling a startup (well, in this case, a unicorn) often involves tough decisions, as Wiz demonstrated by rejecting Google's $23 billion acquisition offer.
The Growth Story of Wiz
Wiz, a cloud security startup, has experienced exponential growth since its inception. Founded by seasoned entrepreneurs with a vision to revolutionize cloud security, Wiz is the fastest startup ever to achieve an $100m ARR -- within 18 month. Their differentiated agentless product provides a significantly better user experience in a crowded market. The beyond-impressive growth trajectory made Wiz a prime acquisition target for tech giants like Google.
Speculations Around Why the Deal Fell Apart
There are several speculations regarding why Wiz decided to reject Google's acquisition offer. One primary reason could be the company's belief in its long-term potential and its desire to maintain independence. In an open letter to its employees, the CEO stated that their goal is clear and simple: to achieve $1 billion in ARR and IPO. Some say Wiz is just using the headline to boost its future valuation, while others believe that Google may discover something they dislike during the due diligence. However, these are just speculations.
Performance of Other Tech Unicorns That Turned Down Significant Acquisition Offers
- Groupon: In 2010, Groupon famously rejected Google's $6 billion acquisition offer, opting instead to go public. It was listed in 2011 with an IPO valuation of $12 billion. Today it is trading around $500 million, a 97% mark down.
- Clubhouse: The audio-based social platform Clubhouse reportedly turned down a $4 billion acquisition offer from Twitter. While Clubhouse saw explosive growth during the pandemic, its user engagement and growth have plateaued quickly. No one even talks about it anymore.
- Discord: Discord, the popular communication platform for gamers and communities, rejected a $10 billion acquisition offer from Microsoft. It is estimated that it is current valuation is around $12 - 15 billion.
Wiz’s choice to turn down Google's $23 billion offer reflects a strong belief in its growth trajectory and strategic vision. Only time will tell if Wiz's gamble will pay off, but their confidence in their mission and potential is undeniably inspiring.