Enterprise data storage startup Cohesity has raised $250 million in a series E round of funding. This takes Cohesity’s total raised to more than $650 million, including its SoftBank-led $250 million series D round back in 2018, and gives it a valuation of $2.5 billion — more than double the figure at its previous valuation two years ago.
With its latest cash injection, Cohesity said it plans to double down on its R&D investment and push its growth domestically and internationally.
Gartner pegged the global public cloud services market at $228 billion in 2019. As more companies transition from in-house infrastructure, cloud computing and related services are forecast to grow 17% to $266 billion this year. Amazon, the public cloud services market leader, has invested significantly in its AWS cloud business, which now constitutes 11% of its overall revenue.
Founded in 2013, San Jose, California-based Cohesity offers what is known as “secondary” data storage, aimed at non-mission critical data, such as backups, development copies, and analytics. It’s not as quick to access, but it is a more efficient and cheaper way of storing data. Primary storage, on the other hand, is generally used for data that applications need to access more frequently.
According to Cohesity, around 80% of companies’ storage capacity is typically consumed by secondary data. Platforms such as Cohesity aim to free up resources by plugging into primary data storage services, including AWS, to protect data and extend backup, archival, and disaster recovery capabilities.
Other players in the space include Palo Alto-based Rubrik, which scored a $261 million investment last year at a $3.3 billion valuation.
Cohesity’s latest round of funding was led by DFJ Growth, Foundation Capital, Greenspring Associates, and Wing Venture Capital, with participation from Sequoia Capital, SoftBank Vision Fund 1, Hewlett Packard Enterprise, Cisco Investments, Baillie Gifford, and Sozo Ventures.