Investment in OTC – Cohesity company
The popular platform for data management
Cohesity is Californian startup. It has grown into a unicorn in five years, increases its customer base, attracted more than $400 million and it is closer to an IPO with each round. We tell why United Traders decided to invest in the company now.
The Cohesity company has created a converged platform for secondary data storage - for example, backups and analytics.
Usually a substantial part of the business data is secondary data. All of them are copied and stored in separate systems, and it is difficult to manage them in this form. Cohesity has developed software and a cloud service that simplifies this task - all the reserved data, objects, files and secondary data services are combined in one platform.
The company was founded by Mohit Aron. He is a former Google employee and co-founder of Nutanix, one of the most popular startups in the hyper-converged infrastructure market. Cohesity strives to make the data management platform «as convenient as a smartphone» and Aron sees the company as a competitive advantage.
According to the company's report for 2018, Cohesity company has increased its customer base and continues to attract new corporate clients with a large audience.
Among the company's customers: Schneider Electric, San Francisco Giants, TCF Bank, United States Air Force, Department of Energy in USA, Kelly Services, Hyatt Hotels and LendingClub.
The company collaborates with giants of the cloud industry Amazon, Microsoft and Alphabet. Their audience can also potentially expand Cohesity's customer base.
The company has raised $410 million from investors such as Sequoia Capital, Cisco Investments, Morgan Stanley Expansion Capital and SoftBank Vision Fund since its founding in 2013. The Vision Fund, known for its investment in the companies of the future, invested $250 million in Cohesity in 2018 as part of additional funding for Round D.
The company launched a large-scale expansion in Europe, Africa, the Middle East and the Asia-Pacific region with the attracted funds.
The Cohesity company received the Technology Pioneer Award from the World Economic Forum in 2018. It is for its contribution to «transforming society and industry» and «a key role in the era of the Fourth Industrial Revolution». Earlier, Google, Twitter and Airbnb became the prize winners.
Finance and Valuation
The Cohesity company achieved 300% revenue growth and reported that its annual revenue rate based on its current pace had grown to $200 million.
Cohesity shares are now trading at $20.36 per share on the over-the-counter market, which is equivalent to a valuation of the company at $2.6 billion.
Cohesity's expected market capitalization after the IPO is $ 6 billion, which given the rapid growth in revenue and the expansion of the customer base.
When an IPO
Management has not yet announced the timing of Cohesity's IPO. According to the founder of the company, the implementation of the current development plans may be followed by the next stage of financing, and new investments can be attracted both in the private and public capital markets.
- Competitive is very high on the market for data management systems. The company's closest competitor is Rubrik.
- If an investor needs to sell Cohesity shares before an IPO, the process may take more than one month.
- Cohesity is a private company, therefore its management and current investors have more information about the business than other market participants.