Veeam reaches $15 billion valuation in shocking secondary sale

In a strategic move, Veeam, a data resilience firm based in Seattle, recently announced the successful completion of a $2 billion secondary share sale, elevating its valuation to $15 billion. This significant round of funding was spearheaded by TPG, with participation from other strategic investors such as Temasek and Neuberger Berman Capital Solutions. This latest investment marks a notable increase in Veeam's valuation, tripling its worth since Insight Partners acquired the company for $5 billion in January 2020. The timing of this capital raise was deemed favorable by Veeam's CEO, Anand Eswaran, as it facilitates liquidity for early investors and employees, while also bringing in blue-chip investors that are essential for future milestones, particularly as Veeam sets its sights on an eventual IPO. To solidify its market position and expand operational capabilities, Veeam intends to utilize the raised capital for bolstering its research and development team, with a focus on enhancing its competitive edge in the crowded data resilience sector. The company also remains opportunistic regarding potential acquisitions, specifically targeting firms with AI technology that would help scale operations, as well as companies specializing in data resilience for workloads where Veeam currently lacks a presence. Veeam's long-standing dedication to data resilience has positioned it firmly within an industry that now features increased competition, attributed to the growing significance of cloud technology and AI innovations. Eswaran expressed confidence in Veeam’s position, citing its No. 1 market share and optimistic projections for future growth, with current figures indicating annual recurring revenue of $1.7 billion and an 18% year-over-year growth rate at the end of September 2024. As the market landscape becomes more competitive, Veeam acknowledges that while competition can present challenges, it also serves as a catalyst for innovation, pushing the industry as a whole to evolve and meet new demands. The company’s ability to attract top-tier investors who are both private and public asset holders is a strategic move that aligns with its growth strategy, ensuring stability and support as Veeam navigates the next critical phases of its development, including the anticipated IPO.