Vast Data is a startup focused on an AI-friendly data storage platform, and it is currently preparing for a new round of financing with a target valuation as high as $25 billion. This target valuation represents a significant increase compared to the $900 million valuation achieved in its Series E funding round in December 2023, highlighting market attention on its potential.
It is understood that although no final deal has been reached and valuations and terms may still change, the company's growth momentum is undoubtedly an important factor attracting the attention of risk investors. Vast Data has not responded to requests for comment regarding this round of financing.
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Vast Data's core products include data management software and unified CPU, GPU, and data hardware, with partners including well-known manufacturers such as Supermicro, HPE, and Cisco. Unlike traditional data storage methods, Vast Data aims to eliminate hierarchical divisions in data storage, particularly excelling in flash storage.
The development of AI has significantly driven Vast Data's business. Its platform can unify structured, semi-structured, and unstructured data storage, accelerating data retrieval speeds while reducing costs for model training and inference. Currently, Vast Data's clients include prominent companies like Pixar, ServiceNow, and emerging AI cloud service providers such as CoreWeave and Lambda, which leverage Vast's technology to provide storage solutions to end users.
In its Series E funding round in 2023, Vast Data's annual recurring revenue (ARR) was $200 million, and CEO and Co-founder Renen Hallak stated in a podcast last May that the company grows at a rate of 2.5 to 3 times annually. Additionally, Vast Data has maintained positive free cash flow over the past four years, demonstrating its robust financial position.
Vast Data’s competitors in the data storage field include Pure Storage, established in 2006 (with a market capitalization nearing $17 billion), as well as Weka, founded in 2011, which raised $140 million last year with a valuation of $1.6 billion. Meanwhile, Vast Data is also developing a database architecture aiming to compete with Databricks' products.
Before this current round of financing, Vast Data had already raised a total of $381 million from investors including Fidelity Management & Research Company, NEA, BOND Capital, and Drive Capital.
Key takeaways:
🌟 Vast Data plans to raise its valuation to $25 billion, drawing significant attention from potential investors.
🚀 The company focuses on providing AI-friendly data storage solutions, eliminating hierarchical divisions in traditional storage methods.
💰 The company has maintained positive free cash flow over the past four years, growing at a rate of 2.5 to 3 times annually, with a strong financial position.