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How you can engineer a big exit like Google's Acquisition of Wiz

Join 12k founders & investors who read these emails every week

Jason Kirby
Mar 25, 2025

Hi there,

This week, the news broke on Wiz's massive deal with Google, and I share some takeaways I got from it that hopefully apply to you.
 Also; 

📸 - Social Snapshot- Founders vibe coding

📊  - Is AI driving a tech M&A surge?

🎙️ - The biggest startup killer w/ Adam Spector

🆓 - Free resources for founders looking to access capital/exit


Welcome to issue 114.

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Social Snapshot

vibe coding

😂 Is this your codebase by Lukas Hermann on X

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The Biggest Mistakes That Lead to Founder Burnout and Failure with
Adam Spector

 

Most founders waste time on the wrong things, and it’s killing their startups. ICYMI, in this episode, I talk with Adam Spector (4x founder, investor in 200+ startups) about what separates winners from those who crash and burn. We dive into why first-time founders get stuck, the mindset shift that fuels scale, and the real reason most startups fail. 

Watch Now
Listen on:

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Data Corner

AI Funding 2025

 

AI Is Driving a Tech M&A Surge


AI isn't just changing how we work, it’s reshaping the M&A landscape. Big tech, SaaS giants, and pharma are all scrambling to buy AI capabilities, from humanoid robotics to coding agents. Here’s where the biggest deals are happening according to CB Insights:

  • AI exits are up: median acquisition prices nearly doubled from 2023 to 2024.

  • Big tech is betting on humanoid robotics, with Meta eyeing consumer robots.

  • AI infrastructure is a battleground: Cisco and IBM are snapping up optimization startups.

  • Data center cooling tech is hot as AI’s energy demands skyrocket.

  • Pharma is buying AI drug discovery startups to stay competitive.

  • SaaS giants are acquiring AI agents to avoid disruption, not be replaced.

  • Coding AI agents are ripe for consolidation, with key targets already emerging

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Raising Capital for your startup?

Thunder's mission is to guide founders toward the right path to reach their North Star, be it through securing equity or debt financing or navigating the path to a successful exit. 

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Talk to us

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Big Exits Aren’t Luck. Wiz’s $32B Sale to Google Was Engineered

Google’s $32B all-cash acquisition of Wiz isn’t just a big cybersecurity deal; it’s a textbook case of how to raise capital, scale smartly, and position yourself for an exit.
Most founders dream of a billion-dollar outcome, but very few actually build toward it. Wiz did.
Pay attention if you want to scale and sell your company for a life-changing number because this deal offers five lessons.

1. Who’s on your cap table matters more than your valuation
Wiz didn’t take money from just anyone. They brought in high-impact investors: Cyberstarts, Sequoia, Index Ventures, who did more than wire funds. These firms helped with customer acquisition, hiring, and strategic positioning.
Too many founders chase the highest valuation possible instead of asking:
  • Can this investor help me land game-changing customers?
  • Will they pick up the phone when I need to close a major deal?
  • Do they have a track record of helping companies exit?
Taking dumb money is easy. Taking smart money makes you rich.

2. Don’t let investors set you up for failure
Wiz didn’t overfund too early. They scaled with capital efficiency, keeping dilution low and ownership meaningful.
I see founders raising massive rounds just because they can. Bad idea. Here’s what happens:
  • You burn through cash inefficiently.
  • Your valuation outpaces your actual business fundamentals.
  • You raise yourself into a corner where you need an even bigger exit just to make investors whole.
Fundraising isn’t a flex, it’s a trade-off. Raise what you need to win the long game. And if you don't need to, don't raise at all.

3. Build your business to be an obvious acquisition target
Wiz didn’t wake up one morning and decide to sell. They designed their growth strategy with acquisition in mind.
Google had to buy them because they were dominating cloud security which is a critical space for Google’s long-term strategy.
Ask yourself right now:
  • Who are my most likely acquirers?
  • What makes me a “must-buy” instead of a “nice-to-have”?
  • Am I solving a problem big companies would rather buy than build?
If you can’t answer those, you’re winging it. And winging it rarely leads to a great exit.

wiz meme

4. Selling some shares early is a strategy
Cyberstarts sold $120M worth of Wiz shares in secondary transactions before the acquisition. That locked in a 222x return on some of their original investment before the exit even happened.
Yet many founders avoid secondaries because they think it looks bad. That’s a mistake.
Structured correctly, secondaries:
  • Help you de-risk without checking out.
  • Make your stock more attractive to later-stage investors.
  • Ensure you don’t end up “paper rich, cash poor” for a decade.
Just don’t get greedy, too much cashing out makes investors nervous.

5. Exits are strategic, not accidental
Wiz’s founders didn’t just focus on building a great company. They focused on building a great company that someone had to buy.
Most founders don’t think far enough ahead. They get caught up in the day-to-day grind and ignore the bigger picture.
If you’ve raised VC, you’re on the clock. Whether it’s M&A or IPO, you need a plan.
  • Are you tracking who’s acquiring companies in your space?
  • Are you building relationships years before you need them?
  • Is your business structured to be acquired without major headaches?
If not, you’re gambling your exit and that’s a bet most founders lose.
 
I still see a lot of founders still treat fundraising as the goal when it’s just a tool. A round of financing doesn’t mean you’ve made it, it means you’ve made a trade. You’re selling a piece of your company for a chance to build something bigger. The question is, are you raising in a way that actually gets you to an outcome like Wiz?

Most startups don’t fail because of bad ideas. They fail because they raise too much, too little, or from the wrong people. Get that right, and your odds of a massive exit go way up. Get it wrong, and your company becomes just another cap table mess that investors would rather forget. Shameless plug: if you do need support with you fundraising or exit strategy, team Thunder is here for you. Book a call, let's talk.
 
Until next week!

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Jason Kirby
Jason Kirby

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