How a bet of $ 6 million in Wiz became a massive return of 200x for an early sponsor

The acquisition of $ 32 billion Wiz by Alphabet, the Google Matrix Alphabet, promises a colossal payment day for investors in the initial stage of the cybersecurity startup.

The agreement is a great victory for Sequoia, one of the best known VC signatures, which can earn $ 3 billion, approximately 25 times the money invested in the company, Bloomberg reported. Despite the substantial yields for the limited partners of Sequoia, their percentage earnings will be much lower than those of another Early Wiz sponsor: VC Cyberstarts based in Israel.

Cybersarts focused on cyber security invested $ 6.4 million of its first $ 54 million fund for the Wiz seed round in February 2020.

Today, that fund has 4.1% of Wiz, which means that you are ready to earn $ 1.3 billion in the agreement, according to a person familiar with the company’s performance. Cybersarts also previously sold $ 120 million of WIZ shares in secondary transactions, which raised the total performance of the fund to $ 1.42 billion, a remarkable 222x yield on the original investment.

Cybersarts also participated in Wiz’s posterior stage rounds, investing a total of $ 40 million of its opportunity. Those investments are now worth $ 128 million, a more modest return of 3.2x in the capital invested, said a person familiar with the yield of Cyberstarts to Techcrunch.

“Cyberstarts will have one of the best funds returning in the history of VC”, Shai Goldman, partner of Next Wave Nyc, wrote in x. “This investment was made with its inaugural fund, a good reminder that Fund 1 can be incredible as LP.”

Cybersarts was not an ordinary emerging risk capital manager when he closed its inaugural fund in 2018. The firm was initiated by Gili Raanan, who previously spent almost nine years as a general partner of Sequoia leading his Israel investment strategy.

The small $ 54 million fund has already achieved a multiple 26 times in its limited socio -partner capital. And that does not even count other potential outputs, such as Island, a startup, according to reports, raising capital in a valuation of $ 4.5 billion.

Index Ventures, which has a 12% participation in Wiz, is ready to earn more than $ 3.8 billion once the sale is completed, Reuters reported.