New funding secures Hedvig as leader in software-defined storage market

By Avinash Lakshman | | Hedvig

It’s with great pride that today we announced our Series C funding. We secured a total of $21.5M, bringing our amount raised to date to $52M, and welcoming three new investors: EDBI, Hewlett Packard Pathfinder, part of Hewlett Packard Enterprise (HPE), and the Oman Technology Fund.

Read on to learn more about our new investors and our how we’ll use these funds to establish a leadership position in the software-defined storage market.

EDBI will help us with our expansion into Asia by establishing a point of presence in Singapore. We’ll begin the process of planning and staffing development, support, sales, and channel resources in that region. In 2016 we saw inbound demand from Australia, Singapore, China, Thailand, Japan, and South Korea. EDBI will help us provide the best customer experience for customers in these and surrounding countries.

As for HPE, we’re seeing a lot of organic demand from customers that are HPE server shops. Our software-defined storage is a natural complement to HPE servers for a range of workloads from backup to private cloud. We’re excited HPE saw the value in our approach and we look forward to diving deeper on this partnership. Stay tuned for more on that front.

Hedvig has been doing business in the Middle East since we originally launched the company in 2015 and we’re excited to have the Oman Technology Fund (OTF) participate in this round. The additional support will help us build on the tremendous partner ecosystem we’ve built to fulfill demand for software-defined and hyperconverged storage.

All of our existing investors contributed, too. Vertex Ventures and True Ventureswere joined by Atlantic Bridge Ventures, which introduced the Oman Technology Fund for additional contribution. Both the new and existing investors see the value and traction we’re getting with blue chip customers across a wide range of verticals.

What exactly did they see? For those of you who know me well, I’m an analytical and pragmatic thinker. Let’s dig into the numbers.

2016 WAS A BANNER YEAR FOR HEDVIG AND SOFTWARE-DEFINED STORAGE

Anyone close to the industry will tell you that fundraising in this particular climate is tough. After seeing widespread funding of software-defined storage startups in 2015 (including our own Series B!), things slowed down in 2016. Many vendors emerged and now each needs to prove repeatable, sustainable success.

At Hedvig we think we’ve established that momentum. Here’s a quick rundown on how Hedvig did in 2016 compared to 2015:

  • The number of employees doubled, or 100% growth.
  • The number of partners grew by 4x, or 300% growth.
  • The average customer deployment grew to nearly 750TB, or 167% growth.
  • The number of multi-petabyte deals tripled, or 200% growth.

Beyond the pure numbers, we also saw a range of key milestones:

2017 WILL BE HEDVIG’S BREAKOUT YEAR

Make no mistake! Hedvig will not rest on its laurels. In addition to expansion into Asia and development of more end-to-end solutions with HPE, Hedvig is now well-capitalized to expand our world-class engineering, sales, and channel teams. Expect us to go aggressively after the market and secure the No. 1 spot amongst a crowded and fragmented software-defined storage landscape.

To that end, I’ve also added Ediz Ertekin to my executive team. Ediz is our new SVP of Sales and Field Operations. He’s an integral part of our commercial success.

Reflecting back on Hedvig, I believe 2015 was the year we launched the company and the product. 2016 was the year we found commercial success and established a solid, repeatable set of use cases around primary and secondary data. 2017 will be the year we achieve breakout success.