4 ms·
> I am missing something big here. How and why did they raise 480 million dollars in a year for a cloud security product? I am not an expert at Wiz specificall
by bhouston 2y ago
> I am missing something big here. How and why did they raise 480 million dollars in a year for a cloud security product?
I am not an expert at Wiz specifically but I understand this is a "sales lead SaaS business" rather than "product lead SaaS business."
Sales lead Saas companies are incredibly costly from a sales and marketing standpoint, you hire a ton of sales people, BDRs and event marketing and other types of outreach and you fly your sales people around the place to win and dine your customers. So you basically invest all your VC money into your sales organization and it probably takes up 65% or maybe more of your head count. The sales people also take a decent percentage of all the ACV contracts they bring in, thus even if you make a ton of sales, they are not profitable for at least the first year. This is growth at all costs.