Veeam gets massive $500 million funding
Vendor sets sights on R&D and acquisitions for future growth
Cloud-focused data protection software developer Veeam has unveiled a new $500 million round of funding the company said will ensure its expansion into new areas around cloud data management and give it the leverage needed for acquisitions.
The new round means that Veeam has no need, and no plans, to move toward an IPO, said Ratmir Timashev, co-founder and executive vice president of sales and marketing for Baar, Switzerland-based Veeam.
Veeam’s new round is significant on a number of levels, Timashev said in a statement. Not only is it Veeam's largest round of funding, it may be the storage industry's largest funding round, Timashev said.
Prior to this round, total funding in Veeam amounted to about $32m, including funding from the company founders and an early funding round from Insight Venture Partners of $15m, he said.
Insight Venture Partners is the lead investor in this new round, with additional funding coming from the Canada Pension Plan Investment Board.
Timashev said Veeam does not need the new round to grow. "Veeam is a profitable company and generates a lot of cash," he said. "Before this investment, we had $800m in cash."
Instead, Timashev said, the new $500m round provides the freedom to scale the company and make acquisitions.
Veeam is already the fourth-largest provider of data protection software worldwide, and has the largest market share of any vendor in Europe, he said, citing IDC's Software Tracker for Data Replication and Protection for the first half of 2018.
The company generated close to $1bn in bookings and about $250m in cash last year, and is taking 3% to 4% market share from competitors every year. "And we've been profitable for the last 10 years," he said.
Veeam has a small acquisition record so far. The company in 2008 used its original funding to acquire a small company called nworks, and still sells the nworks Management Pack, although it is not a strategic focus.
The company in late 2017 acquired technology for data protection on Unix environments, particularly in IBM AIX and Oracle Solaris environments.