Google’s Potential Acquisition of Wiz Highlights Israeli Military Intelligence Impact

Google’s parent company, Alphabet Inc., is reportedly in advanced negotiations to acquire cybertech company Wiz for a staggering $23 billion. Founded by Assaf Rappaport, a former officer from Israel’s elite 8200 military unit, Wiz has rapidly ascended in the tech industry.

Military Intelligence Fuels Israel’s Tech Sector

The potential acquisition underscores the significant role of Israel’s military intelligence units in bolstering the nation’s tech economy. Despite economic pressures from the Gaza conflict, Israel’s tech industry remains resilient, contributing about 20% of the country’s output and employing around 15% of the workforce.

Success Stories with Military Roots

Many of Israel’s successful tech companies, such as Check Point Software Technologies, Nice, Palo Alto Networks, CyberArk, Wix, and Waze, have founders with military backgrounds. Rappaport credits his time in the 8200 unit for his entrepreneurial success. Along with his colleagues Yinon Costica, Roy Reznik, and Ami Luttwak, Rappaport co-founded Adallom in 2012, later selling it to Microsoft for $320 million. In 2020, the team launched Wiz, which quickly achieved a $12 billion valuation following a $1 billion funding round in May 2024.

The Impact of 8200 Graduates

Gili Raanan, founder of Cyberstarts and a partner at Sequoia Capital, notes that while military experience isn’t a prerequisite for investment, a significant portion of Israeli tech teams consists of 8200 graduates. The unit’s meritocratic and innovative culture facilitates a smooth transition into the startup ecosystem. Raanan, an early investor in both Adallom and Wiz, recalls sealing the investment terms for Adallom on a napkin at a gas station.

Advantages of Military Intelligence Training

Dror Bin, CEO of the Israel Innovation Authority, explains that 8200 serves as Israel’s main information-gathering unit, akin to the U.S. NSA. Another lesser-known unit, 81, provides advanced technologies to combat soldiers and has also been a springboard for many cyber, AI, and fintech firms.

Resilience Amidst Economic Challenges

Despite the economic downturn caused by the Gaza conflict, Israeli startups have thrived, especially in cloud security. According to Startup Nation Central, private funding for Israeli startups increased by 31% to $5.1 billion in the first half of 2024, with cybersecurity accounting for 52% of the funding.

A Sign of Confidence in Israeli Tech

If Alphabet’s acquisition of Wiz proceeds, it would surpass Intel’s $15.3 billion purchase of Mobileye in 2017 and generate at least $1 billion in tax revenue for Israel. Even if the deal doesn’t materialize, it signals strong confidence in Israel’s tech sector. Dror Bin predicts more acquisitions in the pipeline, highlighting the appeal of Israeli tech companies.

A Boost for the Cloud Security Sector

Amiram Shachar, CEO and co-founder of Upwind Security believes that Google’s potential purchase of Wiz would greatly benefit both the cybersecurity and cloud industries. He emphasizes the importance of building comprehensive security platforms to protect the future of cloud technology.

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