Oct
10
2018
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Egnyte hauls in $75M investment led by Goldman Sachs

Egnyte launched in 2007 just two years after Box, but unlike its enterprise counterpart, which went all-cloud and raised hundreds of millions of dollars, Egnyte saw a different path with a slow and steady growth strategy and a hybrid niche, recognizing that companies were going to keep some content in the cloud and some on prem. Up until today it had raised a rather modest $62.5 million, and hadn’t taken a dime since 2013, but that all changed when the company announced a whopping $75 million investment.

The entire round came from a single investor, Goldman Sachs’ Private Capital Investing arm, a part of Goldman’s Special Situations group. Holger Staude, vice president of Goldman Sachs Private Capital Investing will join Egnyte’s board under the terms of the deal. He says Goldman liked what it saw, a steady company poised for bigger growth with the right influx of capital. In fact, the company has had more than eight straight quarters of growth and have been cash flow positive since Q4 in 2016.

“We were impressed by the strong management team and the company’s fiscal discipline, having grown their top line rapidly without requiring significant outside capital for the past several years. They have created a strong business model that we believe can be replicated with success at a much larger scale,” Staude explained.

Company CEO Vineet Jain helped start the company as a way to store and share files in a business context, but over the years, he has built that into a platform that includes security and governance components. Jain also saw a market poised for growth with companies moving increasing amounts of data to the cloud. He felt the time was right to take on more significant outside investment. He said his first step was to build a list of investors, but Goldman shined through, he said.

“Goldman had reached out to us before we even started the fundraising process. There was inbound interest. They were more aggressive compared to others. Given there was prior conversations, the path to closing was shorter,” he said.

He wouldn’t discuss a specific valuation, but did say they have grown 6x since the 2013 round and he got what he described as “a decent valuation.” As for an IPO, he predicted this would be the final round before the company eventually goes public. “This is our last fund raise. At this level of funding, we have more than enough funding to support a growth trajectory to IPO,” he said.

Philosophically, Jain has always believed that it wasn’t necessary to hit the gas until he felt the market was really there. “I started off from a point of view to say, keep building a phenomenal product. Keep focusing on a post sales experience, which is phenomenal to the end user. Everything else will happen. So this is where we are,” he said.

Jain indicated the round isn’t about taking on money for money’s sake. He believes that this is going to fuel a huge growth stage for the company. He doesn’t plan to focus these new resources strictly on the sales and marketing department, as you might expect. He wants to scale every department in the company including engineering, posts-sales and customer success.

Today the company has 450 employees and more than 14,000 customers across a range of sizes and sectors including Nasdaq, Thoma Bravo, AppDynamics and Red Bull. The deal closed at the end of last month.

Feb
08
2017
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Egnyte Connect lets business users access files wherever they live

Network connections depicted over a city. The cloud was supposed to solve the file access problem. The trouble is that when you work for a big company, some of your files may live in the cloud and others on-prem. How do you access all of those files regardless of where they live? Egnyte hopes to settle all of that with the launch of Egnyte Connect for the desktop today. Egnyte has always tried to separate itself from Box and Dropbox… Read More

Oct
03
2016
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Egnyte announces deep partnership with Microsoft…at Dreamforce

An array of hard drives. Egnyte announced today that moving forward, it would be using Microsoft Azure as its primary cloud partner. While it would continue to support other cloud vendors like market leader AWS, it likely means that the company sees the best way to succeed inside the Azure ecosystem.
In an interesting twist, instead of making the announcement last week at Microsoft’s Ignite conference, Egnyte… Read More

Jun
07
2016
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Egnyte pushes beyond storage into document protection

File with social network connected to it. Those able to access are green. Those who can't are red. Egnyte has gotten as creative as it could as an online storage company. You could store your files on Egnyte in the cloud, on prem or with a competing storage service if you liked, but the company recognized that storage can only take you so far. Today it announced some new approaches designed to expand beyond that original storage vision. “As a pure-play stand-alone strategy,… Read More

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