Nasuni Secures $60 Million Growth Equity Investment

Nasuni Corporation announced a $60 million equity investment by new investor Sixth Street Growth, the growth investing platform of global investment firm Sixth Street, which will also be joining board.

The valuation reflects an increase over the company’s previous capital raise closed 18 months ago. This expansion is in response to accelerated demand for its file data platform and as organizations move workloads to cloud environments to realize the benefits for increased scale, superior economics and heightened security from ever intensifying cyber threats. 
  
This is the 4th round of financing the company has raised over the last 5 years, in which they have raised a total of $148 million. With this financing, the firm now has approximately $100 million in cash on its balance sheet. The new investment will be used to fuel growth and expansion of its File Data Services as the company invests in innovation, international expansion and potential strategic acquisitions.
 
“The unprecedented events of the past 24 months have accelerated the general cloud transformation for businesses and the increasing value of data,” said Paul Flanagan, CEO. “Cybersecurity threats such as ransomware are forcing businesses to think differently about their data infrastructure. Nasuni pioneered the cloud-based file data services category almost a decade ago and has led the way in defining the architecture, business model and user experience. This investment and our continued, rapid growth are validation of our vision.” 
 
Enterprises are adopting cloud solutions to strengthen cyber resilience, support hybrid work models and get frictionless scale to meet business needs. Based on this demand, IDC forecasts cloud file services adoption will reach a 5-year CAGR of 40% and be a $14 billion market by 2025.This growth rate for file data is higher than both the block and object storage markets.
 
“Nasuni offers its clients great products, with solutions that are highly effective at solving pressing needs for efficient cloud storage and data protection,” said Michael McGinn, partner and co-head, Sixth Street Growth. “Nasuni is poised to accelerate its already impressive organic growth through international expansion and the development of new features and capabilities as it continues to be a leader in the file data services market.”  
 
As data grows exponentially in parallel to the new cloud operating model, traditional storage and data protection based on hardware is no longer scalable, secure or cost-effective. Instead, businesses need a new approach which can be deployed from anywhere, have unlimited scale, protect data across the enterprise and deliver it securely as a cloud service. Only solutions built natively in the cloud will be able to deliver on all of this.
  
The funding comes as Nasuni reported record results from its fiscal year ending December 31, 2021. The company saw significant Y/ growth in annual recurring revenues, a continued surge in customer wins globally and a increasing number of customers paying more than $1 million in annual contract value. It also saw traction across its partner ecosystem.