Extremely Strong Business Growth Results in Tripling Valuation
The latest business funding round comes as private equity firms seek exposure to tech startup companies. Tiger has also led financing rounds for cloud company Redis Labs and ecommerce startup Kajabi. Squarespace, another Tiger-backed company, reached a business valuation of $10 billion in March and is planning to go public via direct listing later this month.
The outstanding $3.7 billion valuation comes shortly after the startup company reported all-time high results and substantial customer growth in just two years of operation. The software company ended its second year at almost $100 million in annualized software run rate, after growing its software business by fourfold year-on-year.
VAST is a data storage company founded in 2016 and based in New York. The startup company, which has brought its balance sheet to $230 million, says it strives to “direct an extinction event” for more conventional storage devices like hard drives.
“The pioneering and inventive spirit of our team influences every aspect of our product and business and has redefined how successful businesses can be built,” said Renen Hallak, founder and chief executive of VAST Data.
“We are humbled by today’s validation from Tiger and NVIDIA. It is evidence of our accomplishments to date and serves as a launchpad for the opportunity ahead of us.”
VAST Data’s managed storage software has helped modernize data centers as the world continues to adopt artificial intelligence (AI) computing. Since it started operating in February 2019, it has become one of the fastest-selling tech infrastructure startup companies in history. The startup has also introduced a new consumption model named “Gemini,” designed to break down its hardware and software businesses.
According to the data shared by the startup company, its customers make “significant initial investments at an average of $1M,” which are then raised “in a very short time.” As a result, VAST has expanded its net revenue within existing customers by 328%.
“VAST Data’s innovation engine has resulted in a breakout business story that speaks for itself. We’re excited to partner with VAST as they transform the value that organizations extract from their data, and we see incredible potential as enterprises embrace data-driven AI computing across every facet of their business,” said John Curtius, a partner at Tiger Global Management.
The company said it could eventually go public; however, it is not a plan for the near future, particularly not via a deal with a special purpose acquisition company right now, Hallak said.
“I’ve redirected all of those SPAC emails to my spam folder.”
Software storage startup VAST Data reached a valuation of $3.7 billion after raising $83 billion from Tiger Global Management. The new funding round comes shortly after VAST reported record-breaking and outstanding customer growth since its launch in February 2019.
About the Author
Avi Ben Ezra is the CTO and Co-founder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.