Egnyte provides cloud-based content intelligence, governance, and collaboration tools via a unified intelligent content platform that integrates AI, file storage, content sharing, and data security. Launched in 2008, the company supports both cloud and on-premises IT operations and serves over 22,000 enterprise customers globally. Egnyte focuses on innovation through continued investment in research and development to enhance employee productivity, automate business processes, and strengthen data safeguards. The company plans to expand its global market presence and enter additional vertical industries and international markets. Founders, management, and existing investors—including funds and accounts managed by Springcoast, GV, Polaris, and Kleiner Perkins—will retain significant ownership following the new investment. Financial terms of the transaction were not disclosed. Egnyte, founded in 2007, builds a hybrid cloud and on-premises file storage and sharing platform that includes security and governance components. CEO Vineet Jain expanded the product from basic file sharing into a broader platform emphasizing post-sales experience and enterprise controls. The company serves more than 14,000 customers and employs about 450 people. Egnyte has recorded more than eight straight quarters of growth, has been cash-flow positive since Q4 2016, and grew sixfold since its 2013 financing. Management says the new capital will be used to scale engineering, post-sales, customer success and other departments rather than solely increasing sales and marketing. Leadership views this round as the final private raise before an eventual IPO. Egnyte offers a hybrid file-storage platform that fuses local and cloud storage to target enterprises concerned about placing sensitive data on public clouds. The company plans to use new capital for international expansion and marketing and is expected to consider vertical expansion and building editing tools on top of its storage technology. Egnyte reported current revenue between $25 million and $40 million and said it expects to be cash-flow break even by the fourth quarter of 2014. It currently runs gross margins of roughly 60% and aims to boost that to about 75%. Management expects $95 million to $105 million in GAAP revenue in 2015 and said revenue has doubled year‑over‑year for the past two years with a forecast to more than double revenue ending 2013. Egnyte competes with Box and Dropbox and faces incumbents and platform providers such as Google, Microsoft and Amazon. Egnyte offers a cloud file storage solution that stores documents in a cloud environment while presenting files on users' desktops via shared and private folders. Its service integrates with Google Apps and Google Drive and allows documents to be edited and synchronized between local and cloud drives. Egnyte emphasizes accessibility combined with IT-set policies so administrators can control how the service is used and grant access to users both inside and outside an organization. The company is banking on the popularity of the hybrid cloud for long-term growth, enabling enterprises to keep needed servers while extending to cloud services. CEO Vineet Jain said the enterprise market opening traces back to services such as Dropbox, which raised awareness of how storage can be used. Egnyte competes in a crowded market against Box, Mozy, Syncplicity, SugarSync, and Nasuni, where funding is deep—Box raised $81 million last fall. Egnyte provides file storage and synchronization using a hybrid cloud model in which businesses keep a Network-Attached Storage "local cloud" linked to office computers while the NAS is also synced with Egnyte's servers for remote access. Local Clouds can be Netgear Ready NAS devices or VMware-based virtual appliances, and synced files are accessible from Macs, Windows, and mobile phones. Company admins can enable file sharing and grant restricted access to partners, while the cloud portion serves as remote backup. Egnyte has seen rapid growth, quadrupling its customer base in 2010 and syncing more than 5 billion files across over 500,000 user licenses. The service handles heavy usage—about 2 million file operations in a 24-hour window, averaging more than 3,000 file uploads and downloads per minute. Egnyte faces competition from SugarSync, Box.net, and Dropbox and plans to expand into international markets, increase domestic engineering, sales and marketing, and launch an enterprise application for the next iPad.

Total raised

$131M

Funding rounds

5

Latest round

Equity

Latest activity

Oct 2018