Thursday, April 9, 2020

Cohesity raises $250 million for its web-scale data management

Cohesity, which offers a web-scale platform for data management, announced $250 million in Series E funding. The San Jose, California-based start-up is now valued at $2.5 billion, more than double the valuation from the company’s Series D round less than two years ago. With the new funding, Cohesity’s total funding since inception exceeds $650 million.

Cohesity specializes in hyperconverged secondary storage. Its hyperconverged appliance consolidates all secondary data and associated management functions on one unified solution, including backups, files, objects, test/dev copies, and analytics.
The company cited the following recent milestones:

  • 150 percent increase in recurring revenue, emphasizing the success of the company’s subscription-based software model.
  • 100 percent increase in customers as well as data under management.
  • 135 percent increase in the number of Cohesity’s new and existing customers that have licensed the company’s cloud capabilities.

“Closing a major funding round during these times of economic uncertainty is testament to the promise that our investors see in Cohesity,” said Mohit Aron, CEO and founder, Cohesity. “More enterprises globally are abandoning legacy offerings in favor of our modern, software-defined approach to data management that is incredibly simple to use -- critical during these challenging times as customers are looking to reduce total cost of ownership while enabling remote IT teams.”

The new funding was led by DFJ Growth, Foundation Capital, Greenspring Associates, and Wing Venture Capital. DFJ Growth and Greenspring Associates are new investors as are Baillie Gifford and Sozo Ventures. The round also includes broad support from existing investors, including Sequoia Capital and SoftBank Vision Fund 1, as well as strategic investors Hewlett Packard Enterprise and Cisco Investments.

See also