VAST Data closes $118 million Series E, nearly triples valuation to $9.1 billion
VAST Data closes $118 million Series E, nearly triples valuation to $9.1 billion
The Israeli-founded startup surpassed $1 billion in cumulative software bookings and $200 million in annual recurring revenue (ARR) at the end of Q3, maintaining a positive cash flow for the last 12 quarters
VAST Data, which develops an AI data platform, announced on Wednesday that it has secured $118 million in Series E funding at a $9.1 billion valuation. The round was led by Fidelity Management & Research Company and accompanied by New Enterprise Associates (NEA), BOND Capital and Drive Capital.
The VAST Data Platform unifies storage, database, and containerized compute engine services into a single, scalable software platform architected from the ground up to power AI and GPU-accelerated tools.
VAST Data, founded by Israeli entrepreneurs Renen Hallak and Shachar Fienblit, completed an $83 million series D led by Tiger Global Management at a post-money valuation of $3.7 billion in May 2021. That valuation was three times more than what the company received the previous April.
"We have been a profitable company for 12 quarters. It was important for us to add investors who could contribute to the company and add value,” Shachar Fienblit, Chief R&D Officer and co-founder at VAST Data, who also heads its operations in Israel, told Calcalist. “We were not surprised by the company's valuation because we are currently the leading company in our field. We are not busying ourselves with planning an IPO, but only with creating value for the company. Since the company was established, it has already achieved a billion dollars in cumulative sales and an ARR of $200 million. We have maintained profitability for a long time, backed by exceptional growth data. Very few companies can both reach profitability and sustain an increasing pace of revenue."
Fienblit explained the role VAST Data is playing in the AI revolution. “Success at this time requires a data platform that allows ideal access to information. We are building this platform and are the world leader in data for AI,” he said. “This is a world experiencing very significant growth. Most AI clouds use our infrastructure. We are the engine that enables AI and facilitates the revolution.”
The company employs about 700 people worldwide, with approximately 300 in Israel based in offices in Tel Aviv and Haifa. The investment will be used to hire more employees in Israel as well as in research and development positions.
According to Fienblit, the funding round was not affected by the war. "The war affects all of us on a personal level, but on a company level, we continued to work with a very successful last quarter. The funding that concluded during the war was not an issue. We are viewed as a global company."
According to the company, at the end of Q3, VAST Data surpassed $1 billion in cumulative software bookings and $200 million in annual recurring revenue (ARR). The company achieved 3.3x year-over-year (YoY) growth and maintained positive cash flow for the last 12 quarters with a gross margin of nearly 90%.
VAST Data’s customer roster includes the likes of Booking Holdings, Inc., U.S. Air Force, U.S. Department of Energy, Verizon, Boston Children’s Hospital, Pixar, and Zoom, among others.
