SoftBank-Backed Cohesity Valued in Share Sale at $3.7 Billion

Data management business Cohesity Inc., backed by SoftBank Vision Fund, said it’s now valued at $3.7 billion, up from $2.5 billion last year.


The valuation was ascertained as part of a tender offer by investors for employee shares expected to total about $145 million, Cohesity founder and Chief Executive Officer Mohit Aron said in an interview. The investment is being led by Steadfast Capital Ventures, with participation from existing investors, including SoftBank Vision Fund, DFJ Growth, Foundation Capital and Wing Venture Capital.


Cohesity, whose clients include Cisco Systems Inc. and NASA, provides data management services, saying its products can simplify backup and recovery and defend against cybersecurity threats.


Aron said the company has hundreds of millions of dollars in annual revenue and is nearing cash flow break even. Aron previously co-founded enterprise cloud business Nutanix Inc., which went public in 2016.


He said an initial public offering for Cohesity is “not far off,” declining to comment further.


The company, based in San Jose, California, has opted not to raise more financing in the coming months because it still has significant capital in the bank, said Cohesity board member Ashu Garg, general partner at Foundation Capital.

“Raising more money today would be dilutive,” Garg said. “The company has more than two years of cash on the balance sheet.”


Cohesity’s valuation would have jumped even higher if it had done a primary round with preferred shares instead of common shares, Garg added.

Cohesity last announced a financing round in April, in which it raised $250 million and was valued at $2.5 billion. The company has raised more than $650 million to date.


This announcement was originally featured in Bloomberg. Read the full story here: https://www.bloomberg.com/news/articles/2021-03-30/softbank-backed-cohesity-valued-in-share-sale-at-3-7-billion