Using Growth Funding to Deliver World-Class Customer Experience, Expand Product Footprint and Accelerate Global Adoption
Egnyte, provider of the industry-leading content platform for business, announced a $75 million round of growth funding from Goldman Sachs. Egnyte, who has not raised capital since December of 2013, will utilize the late-stage investment to accelerate growth and deliver their award-winning content platform with a world-class customer experience on a global scale.
Founded in 2007, Egnyte helps businesses transition their infrastructure to the cloud by replacing file servers, improving content management systems, and protecting sensitive content. Today, the Egnyte platform is being used by more than 14,000 paying customers worldwide, including globally-recognized brands such as Arista, Balfour Beatty, BuzzFeed, Nasdaq, Red Bull, Yamaha, and more.
“Egnyte has impressed us from both a business and a technology perspective,” said Holger Staude, Vice President of Goldman Sachs Private Capital Investing. “The Egnyte management team has been able to show fiscal discipline, growing their top line rapidly without requiring significant outside capital. That business model, paired with a flexible product that can help meet the growing demand from businesses to move their infrastructure to the cloud, gave us the confidence to invest in the company. We believe Egnyte is well-positioned to replicate their success on a global scale and become the content platform of choice for businesses.”
Egnyte has been cash flow positive since 2016 and has recorded 8+ quarters of positive growth. With businesses adopting the cloud at an unprecedented rate, Egnyte has the opportunity to disrupt $400B in legacy IT spend.
“We have built our business differently than most of the SaaS companies in the market, executing on a go-to-market strategy that focuses on a relentless pursuit of doing what is best for our customers and letting the top line take care of itself,” said Vineet Jain, CEO and co–founder of Egnyte. “We are excited about the new investment from Goldman Sachs and see it as a vote of confidence in our strategy and what we‘ve been able to accomplish to this point. Moving forward, with the tremendous market opportunity in front of us, this investment will allow us to focus on the long-term goals for our business – increasing our global presence, expanding our product footprint, and delivering the best customer experience in the industry.”
Goldman Sachs‘ investment brings Egnyte’s total funding raised to $132.5 million. In addition to Goldman Sachs, the current investor base includes:
- Google Ventures
- Kleiner Perkins Caufield & Byers
- Northgate Capital
- Polaris Partners
- Seagate Technology
The full $75 million Series E investment was made by Private Capital Investing, a part of Goldman Sachs‘ Special Situations Group that focuses on growth equity investments in leading technology–enabled companies. Holger Staude will represent Goldman Sachs‘ seat on the Egnyte board. UBS Investment Bank acted as the sole placement agent.
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