By Krystal Hu SAN FRANCISCO, Dec 2 (Reuters) – Cloud data-management startup Eon said it has raised $300 million in a new funding round led by Gil Capital and that its valuation has almost tripled to $4 billion. Eon builds software that sits on top of public cloud platforms. The software stores and backs up […]
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Cloud data startup Eon’s valuation surges to $4 billion in latest funding round
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By Krystal Hu
SAN FRANCISCO, Dec 2 (Reuters) – Cloud data-management startup Eon said it has raised $300 million in a new funding round led by Gil Capital and that its valuation has almost tripled to $4 billion.
Eon builds software that sits on top of public cloud platforms. The software stores and backs up enterprise data, making it portable across providers such as Amazon Web Services (AWS), Google Cloud and Microsoft Azure.
The New York- and Tel Aviv-based company has now raised $500 million since its January 2024 founding and it was last valued at $1.4 billion a year ago. Existing investors Sequoia Capital, Lightspeed Venture Partners and Greenoaks joined the latest series D funding round.
“There is this old world of all the data that you have, and a new world of all the compute and AI you want to use,” CEO Ofir Ehrlich told Reuters in an interview. “We’re bridging this gap with a layer in between.”
Ehrlich, who sold his previous startup to AWS in 2019, said Eon’s revenue more than tripled in the past year, serving “a few tens” of large customers, including fintech firm SoFi. He declined to disclose current revenue figures.
The company plans to use the new capital to expand its team and be opportunistic about acquisitions. The funding gives Eon the flexibility to “be aggressive” and remain resilient if market conditions change, Ehrlich said, adding that it likely wouldn’t need to seek new funding for 18 months.
Recent cloud incidents including an AWS outage in October that hit widely used services have prompted many companies to revisit backup and continuity plans.
Eon’s technology helps businesses maintain access to critical data during cloud outages by allowing workloads to shift quickly between providers. It also enables companies to unify data stored across business units and tap the data for artificial-intelligence and analytics applications.
“Backup data has always been treated as passive, inaccessible storage,” said Elad Gil at Gil Capital. “When that data becomes usable for AI, analytics and real-time insight, companies can turn it into value in a new way.”
(Reporting by Krystal Hu in San Francisco; Editing by Edwina Gibbs)