Backblaze Raised $100M in Funding at a $650M Valuation
The company’s fundraising round is reminiscent of pre-blockbuster market debuts. The company went public as a sub-billion-dollar startup to raise capital, increase its profile and win customers. Backblaze had revenues of $59.9 million during its fiscal year ending June 30. Its second-quarter sales rose 17% to $16.2 million. However, despite its public debut, it remains a speculative investment.
Backblaze raised $100M in funding
The cloud data backup service Backblaze raised $100 million in funding from external investors to help it prepare for its Nasdaq debut next November. The company, which began operations in 2007, raised the money through convertible notes. Backblaze executives said the new funding would help the company open its books to clients and demonstrate maturity in technology. Backblaze now has two exabytes of storage and 500,000 subscription customers, and the external funding will help it accelerate sales.
The IPO comes at a time when a company that generates no revenue can be valued at $12 billion. In July, Rivian raised $2.5 billion in a pre-IPO round. Backblaze raised less than $3 million from outside investors and issued ten million dollars of convertible notes. Today, Backblaze is the fourth-largest company in the world, with more than a half-million paying customers and two exabytes of storage space.
Cloud backup service Backblaze will debut on the Nasdaq on Nov. 11, 2021, with almost no revenue. Comparable IPOs include Rivian Automotive, which raised almost $12 billion, but had almost no revenue. Backblaze may be an example of how to go from a startup with little to no revenue to one that has a market cap of over $650 million.
In 1997, Backblaze generated just $16 million in quarterly revenue. By 2010, the private market had exploded to $1B and tech companies were going public with valuations as low as a few hundred million dollars. Backblaze is competing with Google, Microsoft, and Amazon for the same market share. It now has more than half a million paying customers and has two exabytes of data stored. The company wanted to open up its books and prove its maturity to investors.
Cloud data backup service Backblaze is set to debut on the Nasdaq on Nov. 11, 2021. This is a stunning valuation, especially given the company has only been in operation since 2007. In comparison, Rivian Automotive, which has almost no revenue, raised close to $12 billion in its initial public offering. This funding will likely help boost sales. Backblaze will use the additional funds to grow its subscription services and expand its product offerings.
The new funding will enable the company to expand its sales team and compete with other cloud storage giants like Amazon. The company’s B2 business, which competes with S3 cloud storage from Amazon, grew 61% in the second quarter. The company’s revenue will probably increase tenfold by the end of the year. But it’s hard to predict where Backblaze will be in five years.
Rivian Automotive dominates headlines
The cloud service provider Backblaze is on track to debut on the Nasdaq on Nov. 11, 2021. Rivian Automotive, meanwhile, has almost no revenue but managed to raise over $10 billion in funding. The company has raised almost all of its funding from inside investors. Its IPO is expected to raise more than $12 billion, making it the fourth most valuable company in the world.
The new capital will help it expand its product line, and it also helps the company secure a large amount of additional funding to expand globally. The company also intends to increase its workforce and will continue to focus on customer experience. The funding will go toward expanding operations in China, which is a key market for the automaker. Currently, there are over 14,000 employees in the company.
Reasons for going public
There are many reasons why a company would want to go public, but one that stands out is Backblaze. While the company may have modest revenues, its niche as a cloud-based software company for small businesses has kept it customers. And the company’s valuation is reasonable, making it a good stock to buy for the long term. Here are five reasons Backblaze should go public. They haven’t been around long enough to have lost the trust of customers.
Founded in 2007, Backblaze began as a backup software company before expanding into cloud storage. Today, it boasts more than 500,000 users and $65 million in annual recurring revenue. The company’s primary competition is Amazon Web Services, but it also aims at smaller companies. The company has not revealed a price range for the shares it plans to sell. However, the company’s documents filed with the Securities and Exchange Commission show it wants to list its shares on the Nasdaq Stock Market.
One of the main reasons for Backblaze’s recent IPO is its continued rapid growth and the ability to upsell its customers. This makes Backblaze an attractive investment for investors looking for a cloud backup service. And even with a price tag of around $1 billion, it is a small company with a lot to offer. In the competitive cloud computing market, Backblaze is poised to gain ground on Amazon, which is primarily focused on larger organizations. Backblaze competes with these companies because its offerings are affordable and easy to use. Moreover, its service allows you to store up to two exabytes of data and is a great alternative to AWS.
As a cloud-based storage platform, Backblaze makes data storage, use, and protection easier. Its simple-to-use service is inexpensive for a large number of users in over 175 countries, and it offers a variety of features. Backblaze claims it has 480,000 users in 175 countries. It keeps 500 billion files on demand. This low price makes it attractive to individuals who deal with data.