Total amount raised
$63.1 Millions
Latest funding date
10/01/2024
Location
CloudZero has successfully raised funds through multiple rounds, with notable investors including Innovius Capital and Matrix Partners. The platform specializes in cloud cost optimization, offering features like cost allocation, Kubernetes visibility, and budget management.
Keep reading to explore the intricacies of CloudZero's fundraising journey and the investors backing this innovative platform.
What Is CloudZero?
CloudZero, founded on August 8, 2016, is based in Boston, Massachusetts. The company was established by Erik Peterson and Matt Manger. It employs between 101-250 people.
CloudZero specializes in cloud cost optimization, automating the collection, allocation, and analysis of cloud cost data. This helps organizations uncover savings opportunities and improve unit economics.
The platform offers features like data normalization, cost allocation, shared cost allocation, unit cost metrics, Kubernetes visibility, cost optimization, budget management, and FinOps enablement.
How Much Funding Has CloudZero Raised?
- Seed Round
- Amount Raised: $500K
- Date: September 2016
- Lead Investors: Matrix, Underscore VC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company and develop the initial version of the platform.
- Series A
- Amount Raised: $5M
- Date: October 2017
- Lead Investors: Matrix, Underscore VC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Venture Round
- Amount Raised: $2.1M
- Date: December 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform features and scale operations.
- Venture Round
- Amount Raised: $8M
- Date: December 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support customer acquisition and market expansion.
- Series A
- Amount Raised: Not publicly disclosed
- Date: March 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand the customer base.
- Series B
- Amount Raised: $32M
- Date: June 2023
- Lead Investors: Innovius Capital, Threshold
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand platform features, develop enterprise functionality, and hire more employees.
- Series B
- Amount Raised: $9.5M
- Date: December 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling the platform and support customer growth.
- Venture Round
- Amount Raised: $6M
- Date: October 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform capabilities and expand market reach.
Total Amount Raised: $63.1M
Current Valuation: Not publicly disclosed
Key Investors
- Innovius Capital
- Details: Innovius Capital led the Series B funding round for CloudZero. Justin Moore from Innovius Capital joined CloudZero's board of directors.
- Investment Focus Areas: Comprehensive solutions for cloud cost management, technology, enterprise software.
- Notable Investments: Not publicly disclosed.
- Matrix Partners
- Details: Matrix Partners is an existing investor in CloudZero, having participated in multiple funding rounds including the Series A and Series B rounds.
- Investment Focus Areas: Early-stage companies, technology, software.
- Notable Investments: Not publicly disclosed.
- Underscore VC
- Details: Underscore VC is another key investor in CloudZero, participating in several funding rounds including the Series A and Series B rounds.
- Investment Focus Areas: Early-stage technology companies, cloud solutions, software.
- Notable Investments: Not publicly disclosed.
- Threshold Ventures
- Details: Threshold Ventures co-led the Series B funding round for CloudZero. Arpit Mittal from Threshold Ventures joined as a board observer.
- Investment Focus Areas: Early-stage technology companies, innovative solutions, cloud cost management.
- Notable Investments: Not publicly disclosed.
- G20 Ventures
- Details: G20 Ventures is an existing investor in CloudZero, continuing its support in the Series B funding round.
- Investment Focus Areas: Early-stage technology companies, enterprise software, cloud solutions.
- Notable Investments: Not publicly disclosed.
What's Next for CloudZero?
CloudZero stands at the cusp of significant growth opportunities, driven by the expanding market for cloud cost management. With the public cloud services market projected to reach $597 billion in 2023, CloudZero is well-positioned to capitalize on this trend by enhancing its platform features and enterprise functionality. The company plans to leverage AI-powered anomaly detection and real-time data to provide granular insights, helping organizations optimize their cloud spending.
Future fundraising opportunities appear promising as CloudZero continues to scale its operations and attract more customers. The successful Series B round, led by Innovius Capital and Threshold Ventures, indicates strong investor confidence. Additional funding rounds could further support platform expansion and market reach, potentially leading to strategic acquisitions to enhance technology and capabilities.
However, CloudZero may face challenges such as competition from other cloud cost management solutions and the need to continuously innovate to stay ahead. Ensuring that engineers act on cost optimization insights and maintaining a user-friendly platform will be crucial for sustained growth. Despite these hurdles, CloudZero's comprehensive approach and market potential suggest a bright future ahead.
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