Vates Secures €30 Million in Growth Funding

Vates, a company specializing in open-source virtualization solutions, has successfully raised €30 million in a growth funding round. The round was led by IRIS's Growth fund, with participation from Bpifrance. This funding marks a significant milestone for the company headquartered in Grenoble, France, as it seeks to expand its North American presence and enhance its technology offerings.

Company Background

Vates provides a range of virtualization solutions, notably the XCP-ng platform and the Vates Virtualization Management Stack (VMS). These tools are used by over 1,000 customers in approximately 100 countries, including notable names such as Harman, AMD, and North Carolina State University. With Olivier Lambert as the CEO and co-founder, the company has been self-funded for nearly a decade before this round.

Strategic Use of Funds

The €30 million funding will be directed towards several strategic initiatives:

  • Technology Development: Vates plans to invest in the next generation of its virtualization platform, focusing on performance, storage, security, and automation. This will also include adapting to new infrastructure demands driven by artificial intelligence and emerging workloads.

  • Market Expansion: With North America already contributing to nearly half of its business, Vates aims to reinforce its sales, marketing, and customer engagement efforts in the region. The company is looking to increase its market share among large enterprises, public-sector organizations, and service providers.

  • Global Partnerships: Part of the investment will also support the expansion of Vates' global partner ecosystem, involving distributors, system integrators, and technology partners.

Market Context

The virtualization market is undergoing significant changes, particularly following Broadcom's acquisition of VMware. Companies like Vates are poised to capitalize on these shifts as organizations reassess their virtualization strategies.

Leadership Insight

Olivier Lambert, CEO, expressed confidence in the company's direction, emphasizing the importance of the North American market and the role of innovation in driving Vates' growth.

With this new capital, Vates is well-positioned to expand its influence and continue its growth trajectory in the rapidly evolving virtualization landscape.