Software Storage Firm Vast Data Valued at $3.7 Billion in Round

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Storage software company Vast Data Inc. said it’s valued at $3.7 billion in a new funding round, more than triple its $1.2 billion valuation last year.

Vast Data, which competes in some respects with Pure Storage Inc., raised $82 million in an investment led by Tiger Global Management. Nvidia Corp. also participated in the round. Prior investors in Vast Data include TPG, Goldman Sachs Growth Equity and Norwest Venture Partners, according to the company.

Nvidia’s head of enterprise computing, Manuvir Das, said his company invested because the startup stands out in the storage software category.

“The fundamental computer science challenge for storage systems has always been either they can store very large amounts of data cheaply or they can provide really high-speed access to the data,” Das said.

Vast Data can do both, he said. “It used to be an ‘or’ and they’ve turned it into an ‘and.’”

Vast Data works with clients as varied as NASA, hedge funds and Harvard Medical School.

The startup has surpassed a $100 million revenue run rate, said founder and Chief Executive Officer Renen Hallak. Vast Data doesn’t plan to spend the newly raised capital right now because the business is cash-flow positive, he said.

The business got its start in Israel, before moving to New York. Its research and development team remains in Israel.

Vast Data could eventually go public, but not in the near future and certainly not through a special purpose acquisition company right now, Hallak said.

“I’ve redirected all of those SPAC emails to my spam folder,” he said.

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