Vast Data Raised $83 Million, Total Reaching $263 Million

VAST Data, Inc. announced $83 million in series D funding, led by Tiger Global Management LLC, at a post-money valuation of $3.7 billion – a tripling of the company’s valuation since April 2020.

The round features strong participation from NVIDIA Corp. and several other existing investors, and is driven by VAST’s combination of rapid customer adoption and positive cash flow.

The funds add to series B and sries C investments to create a balance sheet that is $230 million, positioning the firm as an independent infrastructure company to disrupt and transform cloud and AI data centers globally.

The valuation comes as the company recently reported record-breaking results and rapid customer growth throughout its first 2 years of operation. It ended its second year at nearly $100 million of annualized software run rate, having quadrupled its software business Y/Y, while also achieving cash flow positivity. These results will be catalyzed in 2021 and beyond by firm’s new software consumption model called Gemini, which disaggregates the business of hardware and software and provides customers with additional commercial advantages to further the adoption of Universal Storage.

Key success metrics that influenced the Series D include:
• Over 300% Customer Revenue Expansion: Customers make significant initial investments at an average of $1 million, and have subsequently scaled these investments in a short time. On average, the firm has expanded its net revenue within existing customers by 328%. It now has several private and public sector customers who have invested over $10 million in Universal Storage.
• Growth with Cash Flow Positivity: Just as it has broken key architectural tradeoffs to transform customers’ relationship with data, the VAST Data business model has combined breakthrough levels of revenue growth with cash efficiency. When combining an ASP of $1 million and net revenue expansion with customers, the VAST go-to-market model results in higher revenue with fewer resources. This enables the company to focus on growth and serving its customers indefinitely without concern for additional capital raises.
• Foundation for Next gen of AI Computing: Fast access to vast reserves of data is the cornerstone of the modern computing agenda. The firm has established a vision for its software that extends beyond the classical boundaries of storage and will redefine how organizations compute, infer and train AI models. Beyond the era of digital transformation, its platform will usher in the era of natural data analysis.

“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 CEO. “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 innovation engine has resulted in a breakout business story that speaks for itself,” said John Curtius, partner, Tiger Global Management. “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.”

To learn more, visit company’s data blog to read Breaking the Mold, by Jeff Denworth, CMO.