Introduction
Veeam, the data management company that has been helping its users secure and recover their data, has seen a significant surge in valuation following a recent secondary share sale. The company, which was acquired by Insight Partners for $5 billion in January 2020, held a $2 billion secondary share sale that valued it at $15 billion.
Valuation Surge
This latest valuation of Veeam is a significant increase from its previous price tag. Since its acquisition by Insight Partners, the company’s value has more than tripled. This surge in valuation is a testament to the company’s success and growth in the data management sector.
Financial Results
According to financial results from the end of September, Veeam recorded annual recurring revenue of $1.7 billion. The company has been growing at an impressive rate of 18% year over year. These financials are a strong indicator of the company’s performance and potential for future growth.
CEO Comments on the Sale
In an interview with TechCrunch, Veeam’s CEO, Anand Eswaran, discussed the reasoning behind the secondary sale. He stated that the timing was right to give early investors and employees some liquidity. Additionally, he mentioned that the company wanted to bring on strategic investors who would be less likely to sell their stake in the company at an IPO.
Strategic Investors
The investors who have participated in this secondary share sale are all blue-chip, top-tier investors who invest in both private and public assets. This is significant as it means they are unlikely to sell their stake in Veeam at an IPO, which would provide stability for the company’s future growth.
Future Plans
Looking ahead to 2025, Veeam plans to bulk up its research and development team, and make strategic acquisitions when opportunities arise. Eswaran noted that the company is keeping an eye out for potential acquisition targets in areas such as AI technology, data resilience businesses focused on workloads Veeam isn’t currently active in, and companies with adjacent or complementary tech.
Market Competition
The data resilience sector has become increasingly crowded over the years, especially with the rise of both cloud and AI. Companies like Rubrik, Cohesity, and Druva are also players in this space. However, Eswaran views competition as a good thing, stating that it pushes the industry to innovate faster.
Company Overview
Veeam was founded 18 years ago and has always been focused on data resilience and recovery. Its technology covers 150 different workloads, spanning SaaS to AI, and its customers include large corporations like Shell and Deloitte, as well as federal and local governments.
Market Share
According to Eswaran, Veeam is the market leader in the data resilience sector, with a No. 1 market share. The recent secondary sale has validated the company’s direction and strategy.
Conclusion
Veeam’s valuation surge following its secondary share sale is a testament to the company’s success and growth potential. With strategic investors on board and a strong financial performance, Veeam is well-positioned for future growth. As the company looks ahead to 2025, it plans to continue innovating and making strategic acquisitions to solidify its position in the data resilience sector.
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