The takeover of Alphabet Alphabet in Alphabet Google has $ 32 billion in the amount of $ 32 billion, guarantees colossal payment for early investors of cyber security startup.
The contract is a big win for Sequoia, one of the most famous VC corporations, which is to earn $ 3 billion, about 25 times the money he has invested in the company, Bloomberg reported. Despite significant returns for the Sequoia limited partnership, their percentage advantages shall be much lower than from one other early supporter of Wiz: VC Cyberstarts from Israel.
Cyberstarts focused on cybersecurity invested $ 6.4 million from the first $ 54 million fund for the Wiz seed round in February 2020.
Today, this fund owns 4.1% of visas, which implies that it is able to earn as much as $ 1.3 billion on a contract, based on a person familiar with the company’s performance. Cyberstarts also previously sold $ 120 million in visa shares in secondary transactions, which increases the fund’s total return to $ 1.42 billion – an unusual return from the original investment.
Cyberstarts also participated in later rounds of Wiz, investing a total of $ 40 million from the Fund for Possibilities. These investments are now price $ 128 million, which TechCrunch said, which is a modest refund of three.2 times a return from Invested Capital.
“Cyberstarts will have one of the best returning funds in the history of VC,” Shai Goldman, partner at Next Wave Nyc, wrote on x. “This investment was made of the inaugural fund, a good reminder that Fund 1 may be amazing, which returned as LP.”
Cyberstarts was not an abnormal VC manager when he closed its inaugural fund in 2018. The company was founded by Gili Raanan, who had previously spent almost nine years as the general sequoia partner conducting the Israeli investment strategy.
A small fund price $ 54 million has already reached a 26 -fold multiple in the limited capital. And this does not even count other potential exits, resembling the island, the startup supposedly collecting capital capital A valuation of $ 4.5 billion.
Index Ventures, which owns 12% of visas shares, is able to earn over $ 3.8 billion after sales, Reuters reported.