Cohesity has reportedly raised $250 million in a series D round of funding led by SoftBank’s Vision Fund. Other funding round participants included Sequoia Capital, Cisco Investments, Hewlett Packard Enterprise (HPE), Morgan Stanley Expansion Capital, Battery Ventures, and Trinity Ventures. The funding round brings Cohesity’s total equity raised to $410 million, surpassing all other Series D enterprise investments in the U.S. in the last 18 months.
Founded in 2013, Cohesity is an enterprise-focused data storage startup based in San Jose, California. Its platform helps companies consolidate their vast banks of non-mission critical data, which can be expensive to maintain and is a poor resource allocation for most businesses. According to Cohesity, around 80 percent of companies’ storage capacity is consumed by secondary data.
Deep Nishar, senior managing partner of SoftBank Investment Advisers, said, “We believe that Cohesity’s web-scale Google-like approach, cloud-native architecture, and incredible simplicity is changing the business of IT in a fundamental way.” It competes with companies like Dell Technologies Inc. and CommVault Systems Inc. Prior to now, Cohesity had raised around $160 million in funding, with its previous $90 million series C round co-led last year by Alphabet’s venture capital arm GV and Sequoia Capital. The startup’s current valuation wasn’t disclosed.
The new funding will help Cohesity ramp up its global expansion efforts. Cohesity CEO and founder Mohit Aron said, “Cohesity has built significant momentum and market share during the last 12 months, and we are just getting started.” Cohesity is on track for more than $100 million in revenue this year. Aron previously co-founded another enterprise software company, Nutanix Inc., which went public in 2016.
Japanese technology giant SoftBank has been investing heavily in startups around the world in recent years. It created the SoftBank Vision Fund, run by Masayoshi Son, the founder and CEO of SoftBank, back in 2016. The fund has backed Uber Technologies Inc., Nvidia Corp. and DoorDash Inc., but this funding round marks just the second instance of SoftBank investing in a company focused on enterprise software. SoftBank led a $250 million investment in Slack last year.