{"id":24143,"date":"2021-05-03T05:29:27","date_gmt":"2021-05-03T05:29:27","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/wasabi-scores-112m-series-c-on-700m-valuation-to-take-on-cloud-storage-hyperscalers.html"},"modified":"2021-05-03T05:29:27","modified_gmt":"2021-05-03T05:29:27","slug":"wasabi-scores-112m-series-c-on-700m-valuation-to-take-on-cloud-storage-hyperscalers","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/wasabi-scores-112m-series-c-on-700m-valuation-to-take-on-cloud-storage-hyperscalers.html","title":{"rendered":"Wasabi scores $112M Series C on $700M valuation to take on cloud storage hyperscalers"},"content":{"rendered":"

Taking on Amazon S3 in the cloud storage game would seem to be a fool-hearty proposition, but Wasabi<\/a> has found a way to build storage cheaply and pass the savings onto customers. Today the Boston-based startup announced a $112 million Series C investment on a $700 million valuation.<\/p>\n

Fidelity Management Research Company led the round with participation from previous investors. It reports that it has now raised $219 million in equity so far, along with additional debt financing, but it takes a lot of money to build a storage business.<\/p>\n

CEO David Friend says that business is booming and he needed the money to keep it going. \u201cThe business has just been exploding. We achieved a roughly $700 million valuation on this round, so\u00a0 you can imagine that business is doing well. We\u2019ve tripled in each of the last three years and we\u2019re ahead of plan for this year,\u201d Friend told me.<\/p>\n

He says that demand continues to grow and he\u2019s been getting requests internationally. That was one of the primary reasons he went looking for more capital. What\u2019s more, data sovereignty laws require that certain types of sensitive data like financial and healthcare be stored in-country, so the company needs to build more capacity where it\u2019s needed.<\/p>\n

He says they have nailed down the process of building storage, typically inside co-location facilities, and during the pandemic they actually became more efficient as they hired a firm to put together the hardware for them onsite. They also put channel partners like managed service providers (MSPs) and value added resellers (VARs) to work by incentivizing them to sell Wasabi to their customers.<\/p>\n

\n

With a $50B run rate in reach, can anyone stop AWS?<\/a><\/p>\n<\/blockquote>\n

\n

Wasabi storage starts at $5.99 per terabyte per month. That\u2019s a heck of a lot cheaper than Amazon S3<\/a>, which starts at 0.23 per gigabyte for the first 50 terabytes or $23.00 a terabyte, considerably more than Wasabi\u2019s offering.<\/p>\n

But Friend admits that Wasabi still faces headwinds as a startup. No matter how cheap it is, companies want to be sure it\u2019s going to be there for the long haul and a round this size from an investor with the pedigree of Fidelity will give the company more credibility with large enterprise buyers without the same demands of venture capital firms.<\/p>\n

\u201cFidelity to me was the ideal investor. [\u2026] They don\u2019t want a board seat. They don\u2019t want to come in and tell us how to run the company. They are obviously looking toward an IPO or something like that, and they are just interested in being an investor in this business because cloud storage is a virtually unlimited market opportunity,\u201d he said.<\/p>\n

He sees his company as the typical kind of market irritant. He says that his company has run away from competitors in his part of the market and the hyperscalers are out there not paying attention because his business remains a fraction of theirs for the time being. While an IPO is far off, he took on an institutional investor this early because he believes it\u2019s possible eventually.<\/p>\n

\u201cI think this is a big enough market we\u2019re in, and we were lucky to get in at just the right time with the right kind of technology. There\u2019s no doubt in my mind that Wasabi could grow to be a fairly substantial public company doing cloud infrastructure. I think we have a nice niche cut out for ourselves, and I don\u2019t see any reason why we can\u2019t continue to grow,\u201d he said.<\/p>\n

\n

Wasabi just landed $68 million to upend cloud storage<\/a><\/p>\n<\/blockquote>\n

\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/741DuxcmRG8\/<\/p>","protected":false},"excerpt":{"rendered":"

Taking on Amazon S3 in the cloud storage game would seem to be a fool-hearty proposition, but Wasabi has found a way to build storage cheaply and pass the savings <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-24143","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t