Open Source Software Startup Aiven Raises Series C Funding

By Bruce Harpham Monday, April 5, 2021

Aiven, a startup company based in Finland, has raised $100 million in Series C funding. The startup company provides managed services for open source technologies like Apache Cassandra, PostgreSQL databases, and Elasticsearch. Based on this funding round, the company has an $800 million valuation.

Aiven founders Hannu Valtonen, Oskari Saarenmaa, Heikki Nousiainen, and Mika Eloranta.

The B2B company is compatible with public cloud services like Google Cloud, Microsoft Azure, and Amazon Web Services. Additionally, the technology business has one hundred and forty-four employees as of March 2021, according to LinkedIn. The cloud services company was founded in 2016 and raised a $1 million seed round in 2017.

Salesforce Ventures Is an Investor

The cloud business has raised a total of $150 million from investors. The Series C funding found included World Innovation Lab and Salesforce Ventures. Affiliated with Salesforce (a B2B software company that earned over $21 billion in revenue in 2020), Salesforce Ventures was established in 2009. Furthermore, the company has previously invested in Dropbox (the cloud storage app business), DocuSign (a digital signature business that went public in 2018), and Snowflake (a technology business that went public in 2020).

How Aiven Works

The Aiven business model involves multiple plans and price points. For example, the hourly price for Apache Kafka starts at $0.274. In contrast, the B2B company has a different pricing structure for PostgreSQL, where pricing starts at $0.026 per hour. Higher prices apply to business customers that need more RAM, storage, and computing capacity. As a business customer grows their cloud usage, Aiven can earn more revenue.

Business Growth Tied to Open Source Technology

Fundamentally, the Aiven business model is based on the continued adoption of open-source software. Fortunately, open-source software is well entrenched. Six years ago, ZDNet reported that more than 78% of companies currently run on open-source software. By 2021, Red Hat data found that 90% of IT leaders say they are using enterprise open source technology.

Technically, anyone can view the code behind open-source software. Despite that openness, there is a thriving open source industry. CB Insights estimates that the open source services market was worth $17 billion in 2019 and may grow beyond $30 billion by 2022. While open source is often free to download, business customers are more than willing to pay for it. According to CB Insights, “Enterprises want assurances. They want security flaws fixed, dedicated assistance, and software longevity.”

Major Business Customers Include Comcast

Aiven technology is already used by some of the world's largest companies. Comcast, a large communications and entertainment business that earned $103 billion in revenue in 2020, uses Aiven to power the Xfinity Home service. OVO Energy, a UK energy company, leverages Aiven technology to service over half a million business and residential energy customers. The business might win business from Netflix and other streaming services in the future. Today, Aiven powers Vidio, a video streaming company with 60 million users in Indonesia.

More Than 10 Integrations

The technology business offers integration with other software products. For example, the business integrates five log products, including AWS CloudWatch (an Amazon application), GCP Cloud Logging (a Google application), and Syslog Output. Furthermore, the technology company also integrates with metrics apps like Datadog, Prometheus, and Jolokia.

About the Author


Headshot for author Bruce Harpham

Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.

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