Venture capital firms that backed cybersecurity company Wiz, which has been acquired by Google's parent company Alphabet for $32 billion, are expected to see significant returns, with some seed investors possibly making up to 200 times their initial investment. Around 25 firms are set to benefit from the deal, a rare occurrence due to recent challenges in exits caused by high interest rates and stringent antitrust regulations.

Investors who supported Wiz from the early stages and continued to invest have reaped substantial rewards, showcasing the power law principle in venture capital. For instance, Cyberstarts, an Israel-based firm, co-led a seed round for Wiz in February 2020 and stands to gain massively from the investment. Sequoia Capital and Index Ventures have also seen substantial success by investing early in Wiz and accumulating significant stakes in the company.

Index Ventures, as the largest shareholder in Wiz, is expected to receive over $3.8 billion in cash from the transaction, while Sequoia could gain $3 billion. The success of these investments has deep roots in the personal and professional relationships built over time, showcasing the importance of rapport in the industry.

Overall, the deal with Google's parent company is set to deliver exceptional returns for the venture capital firms that believed in Wiz's potential early on.