Veeam, a leading provider of data security and recovery solutions, has seen its valuation surge to $15 billion in a recent secondary share sale. The Insight Partners-backed company announced on Tuesday that it had raised $2 billion in the sale, which was led by TPG and participated in by Temasek, Neuberger Berman Capital Solutions, and others. The deal is expected to close in Q1 2025.

This significant valuation increase triples Veeam's price tag since its acquisition by Insight Partners for $5 billion in January 2020. The company's annual recurring revenue has also seen substantial growth, reaching $1.7 billion, with a year-over-year growth rate of 18%. Veeam's CEO, Anand Eswaran, attributed the successful secondary share sale to the company's strong financial performance and its strategic approach to preparing for an eventual initial public offering (IPO).

Eswaran emphasized that the company didn't need to raise capital but saw an opportunity to provide liquidity to early investors and employees while bringing on board strategic investors who can support Veeam's growth journey. He noted that the new investors, who have a track record of investing in both private and public assets, are less likely to sell their stakes in Veeam at an IPO, unlike many private equity or venture capital funds.

The fresh $2 billion infusion will be utilized to expand Veeam's research and development team and pursue strategic acquisitions that align with the company's growth strategy. Eswaran highlighted areas of interest, including companies with AI technology, data resilience businesses focused on workloads Veeam isn't currently active in, and companies with adjacent or complementary tech.

Veeam operates in a competitive data resilience market, which has seen significant growth with the rise of cloud and AI technologies. The company faces competition from established players like Rubrik, which went public with a $5.6 billion valuation earlier this year, as well as late-stage startups like Cohesity and Druva. However, Eswaran views competition as a positive force that drives innovation and pushes the industry forward.

Founded in 2006, Veeam has consistently focused on data resilience and recovery, with its technology covering 150 different workloads, spanning SaaS to AI. The company's customer base includes prominent corporations like Shell and Deloitte, as well as federal and local governments like the City of New Orleans. Eswaran expressed confidence in Veeam's market leadership, citing its No. 1 market share and the oversubscribed round as validation of the company's direction.

As Veeam prepares for its eventual IPO, the successful secondary share sale demonstrates the company's ability to attract strategic investors and bolster its cap table. With its strengthened financial position and continued innovation, Veeam is well-positioned to maintain its market leadership and drive growth in the data resilience sector.