Backup and disaster recovery (BDR) software provider Veeam has received a $500 million investment. Key backers include Kaseya parent Insight Venture Partners, along with the Canada Pension Plan Investment Board (CPPIB).
The funding news surfaces one day after Veeam rival Rubrik announced $261 million in Series E funding at a $3.3 billion valuation.
Veeam will use the new investment dollars to grow its geographic footprint, speed R&D and pursue M&A activity into adjacent markets, according to Insight Venture Partners. Veeam already generates about $1 billion in annual sales, and has more than 325,000 customers worldwide.
Instead of building its own cloud platform, Veeam has so far delegated that role to third-party cloud service providers (CSPs) and MSPs that host and manage Veeam's software on its own. We've been watching closely, however, to see if Veeam changes course and ultimately builds its own hosted cloud service for partners and customers.
Veeam Receives $500 Million Investment: Timing
The new round of funding comes at an intriguing time. Veeam has gained momentum with strategic partnerships -- working closely with Cisco Systems, HP Enterprise and others to push into large enterprise accounts. Also, the company has been strengthening its distribution efforts.
Still, Veeam has had significant turnover in its executive and business management ranks, including the surprising departure of Co-CEO Peter McKay in October 2018.
Amid its rapid growth, Veeam still faces intense competition from entrenched rivals, upstarts and startups. Cloud-centric data protection and secondary storage companies like Cohesity, Druva and Rubrik are gaining serious momentum. And in the MSP-centric SMB sector, Datto is striving to counter the Veeam-Cisco Systems partnership in the data protection and networking markets.
Insight Venture Partners: Kaseya and Veeam
Veeam investor Insight Venture Partners knows the data protection market well. the company previously invested in Unitrends and Spanning, two backup companies that have since merged with Insight's Kaseya property. Kaseya develops IT management and automation software for MSPs and midmarket IT departments.
Executives from Veeam and the Insight Venture Partners have known each other for quite some time. Insight acquired a small stake in Veeam in 2013, and the executive team relationships extend back to about 2002 or so.
In a prepared statement, Veeam Co-Founder and EVP Ratmir Timashev said:
“We have a long-standing relationship with Jeff Horing and Michael Triplett from Insight Venture Partners, having worked with them since 2002 when Insight invested in our first company, Aelita Software. Back then, we relied on Insight to provide strategic counsel and support, and after we sold that company to Quest Software in 2004, we continued our relationship. Over the years, Insight has been a trusted advisor to Bill Largent, Andrei Baronov and me, even acquiring a minority share in Veeam back in 2013"
Added Michael Triplett, managing director at Insight Venture Partners, and member of the Board of Directors at Veeam:
“Over the past decade, Veeam has established itself as the premier vendor for on-premises backup and recovery software, and is now No.1 in the market for providing data management for public and private cloud environments. Only great companies like Amazon and Apple have been able to pivot into market leading positions in multiple markets, and Veeam now joins this elite group. Veeam has unparalleled leadership in terms of technology, vision and go-to-market strategies, which we believe will only further extend its No.1 market position. Insight is thrilled to continue this journey with Veeam’s management.”
It's a safe bet more updates will surface at the VeeamOn 2019 conference, which is set for May 21-23 in Miami, Florida.
