The venture capital firms that invested in cybersecurity firm Wiz, which agreed to a $32 billion buyout by Google's parent Alphabet , stand to reap returns as high as 200 times for seed investors, among them Sequoia Capital,

Google on Tuesday signed a "definitive agreement" to acquire New York-based cloud security startup Wiz for $32 billion in an all-cash deal. In July, CNBC reported that Wiz walked away from a potential $23 billion acquisition by Google and announced to employees that it would pursue an IPO instead.

Google has struck a deal to buy cybersecurity firm Wiz for $32 billion in what would be the biggest acquisition in the tech giant's 26-year history. The proposed takeover announced Tuesday is part of Google's aggressive expansion into cloud computing during an artificial intelligence boom.