Cohesity makes unicorn milestone after SoftBank-led funding

June 14, 2018 13:26
Data storage startup Cohesity, founded by Mohit Aron five years ago, is seeking to expand in Asian markets. Photo: Cohesity

Enterprise-focused data storage startup Cohesity announced the completion of a US$250 million Series D funding round led by SoftBank’s Vision Fund, taking its total funding raised to US$410 million, TechCrunch reports.

The California-based company now has a valuation of more than US$1 billion, bringing it to the status of a unicorn in just five years since its establishment, Reuters said. 

Investors participating in the latest round also include Sequoia Capital, Cisco Investments, Hewlett Packard Enterprise, Morgan Stanley Expansion Capital, Battery Ventures, and Trinity Ventures.

Founded by Mohit Aron, the company provides services to help businesses store, manage and protect their data.

“Cohesity pioneered hyperconverged secondary storage as a first stepping stone on the path to a much larger transformation of enterprise infrastructure spanning public and private clouds,” said Deep Nishar, senior managing partner of SoftBank Investment Advisers, in a press release.

“We believe that Cohesity’s web-scale Google-like approach, cloud-native architecture, and incredible simplicity are changing the business of IT in a fundamental way,” Nishar said.

This is only the second time SoftBank’s US$100 billion Vision Fund has invested in an enterprise software company, according to the press release. Last year, the fund also led an investment in enterprise messaging company Slack.

The fresh capital will be used to “power large-scale global expansion and underscores Cohesity’s leadership in the rapidly expanding market for secondary data platform”, the company said.

Reuters notes that the Japanese technology giant has also pledged to help Cohesity expand to Asian markets.

The company is looking to add business in Japan, where SoftBank is headquartered, as well as South Korea and India, said Rob Salmon, Cohesity’s president and chief operating officer.

Cohesity helps enterprises consolidate secondary data storage, like backups, development copies and analytics datasets.

Its "hyperconverged" secondary storage platform, which combines software and hardware appliances that connect a company’s data storage to its computing and networking needs, is "a solution for a problem that enterprises currently spend an estimated US$60 billion each year to address using separate point solutions”, the company said.

Cohesity's major technological advantage is that it can offer “Google-like search capabilities” to companies on the large volumes of data they have grown accustomed to leaving buried on backup hardware, Forbes said.

The company saw its revenue grow 600 percent between 2016 and 2017, and is on track to achieve more than US$100 million in revenue this year, Salmon told Reuters.

In the last two quarters, Cohesity has gained more than 200 new enterprise customers, including Air Bud Entertainment, Hyatt, LendingClub, Schneider Electric, TFC Bank, the US Department of Energy, and the US Air Force.

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