Fast-growing cybersecurity startup Wiz raises $300M in fresh funding
Wiz Inc., a cybersecurity startup that passed $100 million in annualized recurring revenue last year, has raised $300 million from investors to support its business momentum.
Wiz announced the Series D funding round today. The round was jointly led by Lightspeed Venture Partners, Greenoaks Capital Partners and Index Ventures. The company is now valued at $10 billion, $4 billion more than what it was worth after its previous funding round in late 2021.
New York-based Wiz sells a software platform that helps companies detect vulnerabilities and malicious activity in their cloud environments. According to the startup, its customer base includes more than 35% of the Fortune 100. It launched in 2020 and reached $100 million in annualized recurring revenue last August.
“The rapid growth of Wiz is a measure of the value we deliver to our customers,” Wiz co-founder and Chief Executive Officer Assaf Rappaport wrote in a blog post today. “By partnering closely with each one of our customers, we learned the complexity as well as the business and operational challenges they face. We’ve learned how important is the partnership between security and development teams to build cloud securely.”
Many cybersecurity tools make use of agents, programs that run in a company’s cloud environment and collect data about potential threats. Wiz says its platform collects cybersecurity data without using agents, which makes it simpler to install. It claims customers can deploy the platform in as little as a few minutes.
Many companies configure their cloud environments using infrastructure-as-a-code scripts, simple programs that can define settings automatically to save time for administrators. Wiz’s platform detects when such scripts may contain vulnerable setting definitions. The platform can, for example, determine if a cloud environment has misconfigured network security rules.
It also spots other types of security weak points. It can detect user accounts that have access to more systems than they necessarily require. If left unfixed, such accounts can potentially be compromised by hackers and used to launch cyberattacks.
Cloud environments’ settings change regularly as companies roll out new applications and update existing ones. Whenever a cloud environment’s settings change, vulnerabilities can potentially emerge. Wiz says its platform continuously scans for new vulnerabilities and provides automated remediation features for fixing them.
In addition to insecure configuration settings, the platform can detect vulnerable code and malicious activity. It not only flags malicious actions such as unauthorized login attempts, but also provides contextual data. Wiz can highlight which user or program performed an unauthorized action and what systems are affected.
Wiz has made significant investments in engineering over the past few quarters. In 2022, it rolled out tools for detecting malicious activity, vulnerable software containers and insecurely stored business data.
Using its latest funding, Wiz plans to continue enhancing its platform as well as open three new offices in Austin, Dallas and Washington, D.C. It will expand its 650-person workforce to support the growth initiative.