We rarely get to watch a company create a new technology category, which is why it’s so much fun watching VAST Data evolve. At the same time, like many such innovators, it’s sometimes difficult to describe precisely what kind of company VAST really is. While the company has technology for storing data, it’s not a storage company. It’s also not a database company, even though it has its own database. It’s the same thing for analytics. And AI.
VAST Data is building a new category of data infrastructure centered around its VAST Data Platform, an advanced data management system designed to revolutionize how organizations handle large and complex datasets, particularly in artificial intelligence (AI) and machine learning (ML).
VAST’s architecture unifies storage, database, and compute engine services to power AI and GPU-accelerated workloads across different data centers and clouds. The platform is versatile, managing a wide range of data types, from videos and images to text and data streams.
The VAST Data Platform is a significant advancement in data management technology, offering a unified, scalable, and efficient solution for handling the complex data needs of modern AI-driven enterprises. Its focus on AI and GPU-accelerated workloads and its ability to manage diverse data types positions VAST as a key player in the data infrastructure sector.
The Funding Round
Reflecting VAST Data’s momentum and potential, the company announced a $118 million in a Series E funding round this week, elevating its valuation to $9.1 billion post-money. The valuation is more than double that of VAST’s previous funding round.
This new round is led by Fidelity Ventures, with participation from multiple investors, including New Enterprise Associates, BOND Capital, Drive Capital, Nvidia, Dell, Goldman Sachs, Tiger Global, and others. With this round, VAST Data’s total funding has reached $381 million.
With over 700 employees globally, the company plans to use the new funds to expand its business reach, focusing on regions like Asia Pacific, the Middle East, and Europe. The investment is expected to further advance VAST’s mission to deliver innovative infrastructure solutions, emphasizing the centrality of data in modern systems.
Delivering infrastructure tailored for next-generation AI clouds, these collaborations highlight VAST Data’s ability to provide a scalable, performant data infrastructure for the industry’s most demanding workloads.
Analysis
VAST Data is enjoying a steep years-long growth curve, and nothing seems to be on the horizon to temper that growth. At this point, it’s all about execution, and the VAST team is doing that well. It has proven its technology across industries, becoming a critical element of some of the most demanding data environments in the world. This includes reimagining AI cloud infrastructure with partnerships with leaders such as CoreWeave, Lambda, and Core42.
The company’s vision clearly resonates. VAST Data told us it’s surpassed $1 billion in cumulative software bookings, achieved 3.3x year-over-year growth, maintains a nearly 90% gross margin, and recently achieved $200M in annual recurring revenue (ARR).
Beyond those already mentioned, VAST has a diverse customer base with several notable companies, including Booking Holdings, the U.S. Air Force, the Department of Energy, Verizon, Boston Children’s Hospital, Pixar, and Zoom. This is a strong validation of VAST’s offerings.
Additionally, VAST Data has deepened its commitment to partners, achieving NVIDIA DGX SuperPOD certification and forming a strategic partnership with Hewlett Packard Enterprise (HPE). HPE uses VAST Data’s technology in its HPE for GreenLake File Storage, which was recently updated to support the demanding needs of AI.
While VAST doesn’t need the new funds for its operations, the influx gives the company headroom that will allow it to expand its global reach without impacting critical R&D spend. Its $9.1B valuation puts VAST in the same neighborhood as many of its publicly traded competitors, demonstrating a strong belief within the investment community that VAST will continue its aggressive growth. VAST Data is experiencing an exciting period of growth and innovation; I can’t wait to see what’s next.
