A Landmark Deal in the Tech Industry

Google has finalized its $32 billion acquisition of cybersecurity firm Wiz — a deal that not only marks the largest purchase in Google’s history but also stands as the biggest acquisition ever involving a venture-backed startup.

The milestone transaction was discussed on the TechCrunch Equity podcast, where hosts Rebecca Bellan, Sean O’Kane, and Anthony Ha spoke with Shardul Shah, partner at venture capital firm Index Ventures — the largest shareholder in Wiz.

During the discussion, Shah shared insights about his long-standing relationship with Wiz’s founding team and why the company became such a compelling acquisition target.

A Decade-Long Relationship With Wiz’s Founders

Shah’s connection with the Wiz founders predates the company itself. Nearly a decade ago, he joined the board of Adallom, a cloud security startup founded by Assaf Rappaport, Ami Luttwak, and Roy Reznik.

That early partnership gave Shah a close look at how the founders approached leadership and decision-making.

“About 10 years ago, I joined the board of Assaf, Roy, and Ami first company, Adallom. So we got a front row seat at how they make decisions, how they develop trust and how that evolved over time.”

The relationship continued when Rappaport later launched Wiz. Shah joined the company during its seed funding stage.

“Assaf called me on my birthday when he started Wiz. And the seed round is when I joined the board.”

Why Wiz Became Such an Attractive Acquisition Target

According to Shah, Wiz’s position within three rapidly growing technology sectors played a major role in attracting Google’s interest.

“It’s no surprise that it’s Wiz. Wiz is at the center of three tailwinds: AI, cloud, and security spend.”

These sectors have become increasingly critical as organizations accelerate their adoption of artificial intelligence and cloud computing.

“And those are central today in light of the AI era where every single workload needs to be secured.”

The company’s platform focuses on protecting cloud infrastructure and production code, helping organizations identify and prioritize vulnerabilities before they become major threats.

Leadership and Culture Behind Wiz’s Growth

While technology and market trends were important factors, Shah believes the company’s leadership team and culture were the real driving forces behind its success.

“At Index, the core of our business is to focus on people. And I really think the core of the acquisition was the people.”

He highlighted the complementary strengths of the founding team:

• Assaf Rappaport – strategic leadership and strong judgment

• Ami Luttwak – visionary thinking

• Yinon Costica – operational focus and present-day execution

• Roy Reznik – execution and delivery

“So together, they created this environment and culture of trust that allowed them to build a platform from the get-go and take on an existing category with unrivaled speed.”

Walking Away From an Earlier Google Offer

Interestingly, Wiz had previously stepped away from an earlier acquisition proposal from Google — a move that drew attention across the startup ecosystem.

Shah explained that such decisions often reflect the founders’ confidence and long-term vision.

“I did tell the founders at one point, I think I believe in them more than I believe in themselves.”

He added that investors often focus less on the final outcome and more on the quality of the decision-making process.

“When founders choose and make decisions, you trust the inputs, like how they make decisions. You don’t really concentrate on the outputs and the luck that goes into whether it’s validated or not.”

How Google’s Resources Could Accelerate Wiz

Following the acquisition, Wiz will gain access to the infrastructure and artificial intelligence capabilities of Google’s cloud ecosystem.

According to Shah, the partnership could significantly expand the company’s security capabilities while preserving its internal culture.

“Google’s resources, the infrastructure, the AI talent they have, allows Wiz to extend that recognition while retaining this culture of trust and camaraderie.”

The integration could strengthen cloud security solutions at a time when organizations worldwide are increasingly relying on complex cloud infrastructures.

A Deal That Could Inspire the Next Generation of Startups

Beyond its financial scale, Shah believes the acquisition will have a broader impact on the global startup ecosystem.

“I think this should qualify as deal of the year or decade, not just the week. Can we change that?”

He also emphasized the inspiration such a major exit can bring to entrepreneurs.

“I think there’s a new imagination for what can be possible for entrepreneurs across the globe.”

While the financial rewards will impact many investors and employees, Shah says the more lasting effect could be the talent, ambition, and innovation that emerge from this milestone deal.

“So we can’t wait to see what the limits are for the next generation.”

Author: Din Kumar