Company Now Valued at $2.5 Billion, More Than Double the Valuation 21 Months Ago
Cohesity today announces $250 million in Series E funding, 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. Cohesity 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.
This funding recognizes the traction Cohesity is seeing in the market as a disruptive, software-defined data management company. Cohesity radically simplifies the way businesses back up, manage, protect, and extract value from their data — in the data center, at the edge, and in the cloud.
“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.”
Since the company’s last funding round, Cohesity has completed its transition to a software business model. In comparing the first half of FY 2019 (August-January) to the first half of FY 2020, Cohesity has hit the following 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.
“We are excited to partner with Cohesity because they are attacking a huge market and are simply the best at what they do. They are reinventing data management with extraordinary solutions and a vision for the future that is unlike any other company in the market today,” said Randy Glein, co-founder and partner, DFJ Growth. “Cohesity has successfully transitioned to a software business model, secured outstanding partners globally, built deep OEM relationships with top technology companies, and is managing data for some of the largest enterprises in the world. We are excited to be a part of Cohesity’s journey and look forward to helping the company, and its world-class team, scale into the category-defining company built to last.”
“Foundation Capital is excited to continue investing in Cohesity — a company that is transforming data management,” said Ashu Garg, general partner, Foundation Capital. “Data is the most valuable digital asset for enterprises today, yet many organizations struggle to manage, protect, and derive value from it. Cohesity’s cutting-edge software makes it easy for customers to solve these challenges in a hybrid cloud world. We believe that’s why the company is seeing such rapid adoption and will continue to win favor with enterprises globally.”
Cohesity will leverage the new investment to advance research and development — building new capabilities to serve some of the largest enterprises in the world. The company will also continue to broaden its reach and awareness both domestically and internationally, while extending its relationships with alliances and partners.
“Cohesity’s latest funding round is a testament to its business strategy and the value its software-defined data management platform provides to customers and partners,” said Phil Goodwin, research director, IDC. “Cohesity’s web-scale platform has a unique architecture to help organizations consolidate and manage their data from a single point of view while supporting powerful apps that make data more useful and productive.”
Cohesity ushers in a new era in data management that solves a critical challenge facing businesses today: mass data fragmentation. The vast majority of enterprise data — backups, archives, file shares, object stores, and data used for dev/test and analytics — sits in fragmented infrastructure silos that make it hard to protect, expensive to manage, and difficult to analyze. Cohesity consolidates silos onto one web-scale platform, spanning from the data center to edge to cloud, and uniquely empowers organizations to run apps on that platform — making it easier than ever to back up and extract insights from data. Cohesity is a 2019 CNBC Disruptor and was named a Technology Pioneer by the World Economic Forum.