Hammerspace, which provides a high-performance data orchestration solution for AI and hybrid cloud environments, announced it’s raised $100 million in a Series B funding round.

The round, led by Altimeter Capital and including participation from ARK Invest and other strategic investors, values Hammerspace at more than $500 million.

Recent Momentum

Hammerspace has shown strong momentum over the past year, driven by increased enterprise adoption of AI and the associated demands on storage and data management.

In 2024, the company achieved a tenfold increase in revenue relative to the previous year. Additionally, Hammerspace has significantly expanded its global presence, with a particular focus in Asia-Pacific markets, including  China, South Korea, Japan, Singapore, and India.

Other proof points for the company’s momentum include:

• Strong growth in enterprise adoption, including significant wins with prominent organizations like Meta (supporting the training of its Llama large language models), the U.S. Department of Defense, and the National Science Foundation.
• Exceptional customer retention, with gross revenue retention rates exceeding 95% and net revenue retention surpassing 330%, highlighting robust customer satisfaction and expansion within existing accounts.

Executive Hires

Earlier this year, ahead of the funding news, Hammerspace brought on executive talent from key competitors. This included appointing Jeff Giannetti, formerly CRO for WEKA, as its new chief revenue officer.

Following Giannetti’s appointment, the company hired two seasoned sales executives, Gregg Machon and Jeff Echols. Machon is Hammerspace’s global vice president of channel sales, coming most recently from a similar role at VAST Data. Echols joins as VP of strategic partnerships, most recently serving as VP of global partner sales at WEKA.

Analysis

While the company’s recent progress is impressive, Hammerspace operates in a highly competitive landscape. Established providers such as WEKA, VAST Data, Pure Storage, Dell, and NetApp continue to offer robust, specialized solutions for high-performance computing and AI environments.

Hammerspace faces competition from fast-growing, aggressive players like WEKA and VAST Data. These companies focus on advanced file systems and high-performance storage architectures optimized for GPU-intensive workloads.

Hammerspace’s differentiation lies in its unified, platform-agnostic approach to data orchestration. By providing a simplified management experience across hybrid and multi-cloud environments, the company offers a compelling alternative to more specialized but less flexible traditional storage systems. It’s an interesting play.

The substantial infusion of $100 million puts Hammerspace in a strong position to accelerate its global growth strategy, enhance product innovation, and solidify its competitive standing. On a call following the announcement, the company told analysts that it plans to spend most of the money on market enablement and expansion.

The size of the investment and the marquee names behind it suggest market confidence in both the company’s business strategy and its technology.

Efficient, performant data management is increasingly central to enterprise AI infrastructure. Companies able to provide simplified yet highly performant solutions, such as those offered by Hammerspace, will gain distinct advantages. Nevertheless, maintaining this momentum will require continuous innovation and strategic execution, especially given the highly competitive landscape.

Competitive Outlook & Advice to IT Buyers

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