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HomeBusinessBusinessCloud Storage Backblaze Raises $100M In Funding, Giving Market Cap Around 650M

Cloud Storage Backblaze Raises $100M In Funding, Giving Market Cap Around 650M

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Backblaze raised just $100 million in its IPO, less than one-twentieth of what firms like GlobalFoundries, Robinhood, and Bumble received in the year. Backblaze stock is up 24% on Wednesday and another 12% on Friday, bringing the share price to $22.31 and giving the business a market valuation of over $650 million.

Over 100 businesses have listed on US markets this year, yet Backblaze takes the opposite IPO route to Rivian as a segment and sub by comparison. At least 21 digital startups set to launch in 2021 are valued at more than $10 billion. Coinbase is worth more than $70 billion, Roblox is worth more than $50 billion, and Affirm is worth more than $40 billion, data were taken by cloud Backblaze 100m 650mnovetcnbc.

“Wow, I can’t recall the very last instance I have seen a firm wanting to approach the stock market having just funded that little,” said Backblaze co-founder and CEO Gleb Budman in an interview given on Thursday following the organization’s market debut. “They were extremely struck by the fact that we had been able to be so invested in expanding the firm to size.”

Amazon, the world’s fourth most valuable firm, is one of Backblaze’s challengers. Over the last 25 years, Amazon has evolved from an online bookstore to a massive n terminus to an entire technological platform. However going public on a small valuation and minimal funding, when Amazon launched publicly in 1997, the business’s quarterly sales were $16 million. Until approximately a couple of decades ago, when the private markets began to swell with new entries, it was customary for technology businesses to go public with estimates of less than $1 billion.

Backblaze management had additional motivations to go public in a highly competitive industry dominated by the world’s largest cloud services from Google, Apple, and Facebook. Backblaze presently stores two exabytes of data, or 2 million megabytes, and has 500,000 paying subscribers.

Backblaze is a reminder of a moment when sub-billion-dollar enterprises commonly went public to acquire funds and enhance their brand in an effort to earn consumers’ trust in an era of blockbuster market launches followed by stratospheric private fundraising rounds. In accordance with the company’s presentation, Backblaze’s revenue for the fiscal year ending June 30 reached $59.9 million, with second-quarter revenues increasing by nearly 17% to $16.2 million.

Backblaze generated just $100 million in its IPO, less than one-twentieth of what firms like GlobalFoundries, Robinhood, and Bumble raised this year. Backblaze stock jumped 24% on Thursday and now another 12% on Friday, bringing the price to $22.31 and providing the business a market valuation of over $650 million.

Over 100 software companies have listed on US markets this year, yet Backblaze is a micro-cap by comparison. At least 21 digital startups set to launch in 2021 are valued at more than $10 billion. Coinbase is worth more than $70 billion, Roblox is worth more than $50 billion, and Affirm is worth more than $40 billion.

On their path to the public markets, all of those firms consistently solicited large sums of funding from venture capitalists. In July, Rivian raised $2.5 billion in pre-IPO financing. Backblaze, on the other hand, has received less than $3 million coming from external investors between its inception in 2007 and the issuance of $10 million in common shares early this year.

Backblaze management had additional motivations to go private in a highly competitive space dominated by the world’s largest cloud computing Online stores, Apple, and Google. Backblaze presently holds two exabytes of data, or 3.5 million megabytes, and has 500,000 paying subscribers.

Budman stated that the IPO provided a clear chance for Backblaze to expose its records to clients and demonstrate that the company is mature enough to be a long-term technological supplier.

He stated that the new funds will help the firm grow its sales force as it competes with significant benefits in terms. In the second period, its B2 division, which competes with Amazon’s S3 cloud services solution, rose 61%.

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