Wasabi closes USD30m funding round led by Forestay Capital

Wasabi Technologies, a hot cloud storage company, has closed a USD30 million financing round led by Forestay Capital, the technology innovation arm of Waypoint Capital, with participation from Wasabi’s previous investors. 

Wasabi has now raised a total of USD110 million.

Customers and partners are emphatically choosing Wasabi’s high performance and predictable, budget-friendly pricing models over cloud storage solutions from Amazon S3 and other first generation cloud providers. During this accelerated global migration to the cloud, the amount of new data Wasabi stores has grown by 4x over the same period last year. In 2019, Wasabi experienced 5x year-over-year revenue growth and tripled its customer base to nearly 15,000 organisations. Wasabi also grew its channel program to more than 2,300 partners during the program’s first 12 months.  

The funding will be used primarily to expand Wasabi’s infrastructure and capacity to meet growing global demand for storage in the USD90 billion public cloud storage market. Wasabi plans to extend its hot cloud storage service to Canada and additional markets in Europe, APAC and Latin America through Managed Service Providers (MSPs) and other channel partners.  

“In an extremely difficult funding market, we’ve been able to raise money at a significant uptick in valuation,” says David Friend, Wasabi’s CEO and co-founder. “We focus 100% of our attention on doing one thing really, really well: storing data in the cloud.  Our investors recognize the power of our business model and the virtually limitless market opportunity that we are addressing,”

Wasabi is changing the economics of the cloud with a predictable pricing model that is one-fifth the cost of legacy cloud storage offerings with no fees for egress or API requests.

“In just three years, Wasabi has harnessed the complex technology that powers its storage and built a strong distribution channel in record time,” says Frederic Wohlwend, Managing Partner of Forestay Capital. “Technology decision-makers don’t want to be locked into a single cloud ecosystem — they want choice, and Wasabi is empowering them to choose limitless storage at an unbeatable price. We are proud to be leading this financing round, and excited by the company's future prospects.”