Egnyte Secures $75 Million Series E

Egnyte, Inc., provider of the content platform for business, announced a $75 million round of growth funding from Goldman Sachs.

The start-up, who has not raised capital since December of 2013, will utilize the late-stage investment to accelerate growth and deliver their content platform with a customer experience on a global scale.

Founded in 2007, the company helps businesses transition their infrastructure to the cloud by replacing file servers, improving content management systems, and protecting sensitive content.

Today, its platform is being used by more than 14,000 paying customers worldwide, including Arista, Balfour Beatty, BuzzFeed, Nasdaq, Red Bull, and Yamaha.

“Egnyte has impressed us from both a business and a technology perspective,” said Holger Staude, VP, 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 a high rate, the firm has the opportunity to disrupt $400 billion 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, 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:
• Floodgate Fund LP
• Google Ventures (GV)
• Kleiner Perkins Caufield & Byers
• Northgate Capital LLC
• Polaris Partners
• Seagate Technology LLC

The $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 technology-enabled companies.

Holger Staude will represent Goldman Sachs’ seat on the Egnyte board.

UBS Investment Bank acted as the sole placement agent.