Veeam announced a new $2 billion investment from several major investment companies. An IPO will be a next step for the company.
Veeam is now said to have a valuation of $15 billion, or about 14.2 billion euros. The investors in this “oversubscribed” funding round are led by TPG, with participation from Temasek and Neuberger Berman Capital Solutions, among others. Morgan Stanley managed the round.
In SiliconANGLE, analyst Zeus Kerravala writes about an extensive conversation with Anand Eswaran, Veeam’s CEO, and Dustin Driggs, its CFO, about what enabled Veeam to reach this point in its evolution and, more importantly, its future plans.
Well-capitalized investors
“We have huge ambitions of growth and profitability,” Eswaran said. “Having extremely well-capitalized investors will help us if we want to make some big moves. We can already make small, medium, and large moves ourselves because of the balance sheet and how profitable we are. But if we want to do something Earth-shattering, we have the investors who will be a key part of this process.”
Previously, Veeam was wholly owned by internal shareholders. This round brings in diversified investors who, according to Eswaran, “will be with us for the duration of the journey,.”
Independent analysis
The CEO described the investment as a great confirmation, as the investors conducted a “massive independent analysis” of the company before deciding to invest. Veeam’s financial results and continuously increasing market share growth explain why investors enthusiastically jumped in.
Eswaran cited four key factors behind Veeam’s growth and appeal to outside investors. First, the good products, in addition to the ecosystem of more than 34,000 partners and 550,000 customers worldwide, including 77% of the Fortune 500.
As a third quality, Eswaran cited the good balance between scale, growth and profitability and, finally, the size of what he called TAM, which stands for total addressable market.
Focus on enterprise market
Veeam leaders expect to achieve more than $1.7 billion in annual recurring revenue by 2024, 29% EBITDA, rapid growth in enterprise sales and 129% customer retention within the subscription model.
Historically, Veeam focused on the mid-market, but Eswaran says the focus on large enterprises has paid off in recent years. “more than half of our revenues coming in from the enterprise,” he said. The company has over 80 clients who spend at least $1 million annually.
Veeam’s next step is an IPO. Although no timetable has been set yet, the company wants to further develop its AI strategy before going public. With rapid growth and ambitious goals, Veeam remains a key player in the data protection market.