Wiz is no stranger to shattering records. After reaching $100 million in annual recurring revenue in just 18 months in August 2022, its $32 billion sale to Google is now the search giant’s largest acquisition.
Investors say it’s all part of a new era of rapid growth for AI startups that some fear will set the bar too high for other startups looking for an exit.
“There are going to be dozens of companies getting to $100 million ARR faster than ever before,” said Ken Elefant, partner and co-founder of Sorenson Ventures. “It’s going to be like setting new world records in the 100-meter dash every day.”
And it’s already happening: Wiz’s revenue growth feat was recently beaten by AI coding editor Cursor, which reached $100 million in ARR in just 12 months.
AI companies have seen outsized valuation growth. Wiz’s sale price is more than 50% above what Google was willing to pay for it in May 2024. Enterprise AI search engine Glean more than doubled its valuation in less than seven months when it raised a $260 million Series E in September.
The deal is the biggest M&A transaction in 2025 so far—a year that’s largely been disappointing for investors who hoped exits would finally rebound in force. A number of President Donald Trump’s policy moves have driven up market uncertainty.
Investors say to navigate this hyper-growth environment, AI startups will need more discipline and precision in market timing.
“You have to press on the gas at the right time,” said Sorenson’s Elefant. “Look at the quality of the revenue you have. Is it sustainable? Is it long-lasting? Look and see: Is the market going in the wrong way? If so, why are you putting your foot on the gas now?”
Some investors caution against viewing Wiz’s acquisition as the new standard for the market.
“There’s still a lot of bargain shopping,” said Greg Dracon, partner at .406 Ventures. “If you have a premium company, you can sell for a great price,” he said. “But that’s a rarity these days.”
Featured Image by Yellow Dog Productions/Getty Images
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