CTERA secures USD $80 million funding from PSG Equity

CTERA, a leader in hybrid cloud data management, has announced the successful raising of USD $80 million in primary and secondary funding.

The investment comes from PSG Equity, a prominent growth equity firm specialised in software and technology-enabled services. As part of this new funding arrangement, Ronen Nir, Managing Director at PSG, has joined CTERA's board of directors, joining existing shareholders Benchmark, Bessemer Venture Partners, and Red Dot Capital Partners.

CTERA has been recognised as the top Leader and Outperformer in the GigaOm Distributed Cloud File Storage Radar for three consecutive years. The company combines an edge-accelerated global file system across both public and private cloud environments, complete with AI-based ransomware protection and data intelligence services. CTERA's solutions are foundational to hybrid cloud initiatives undertaken by some of the world's largest banks, healthcare organisations, global media groups, and government agencies, supporting deployments that scale to tens of petabytes.

The importance of unstructured data in enterprise storage strategy is becoming more evident as it accounts for approximately 80% of organisational data.

This data is typically distributed across various locations including branch offices, endpoints, on-premises, and cloud data centres. Hybrid cloud file storage has emerged as one of the fastest-growing segments within this space. According to Gartner, by 2027, 60% of IT infrastructure and operations leaders are expected to implement hybrid cloud file deployments, a significant increase from 20% in early 2023.

The rise of AI technology adds another layer of importance to unstructured data management. Timely access to data is essential not only for users and applications but also for AI workflows. Modern enterprise AI platforms require corporate data to be readily accessible for training models and augmenting data retrieval in order to ensure relevance and accuracy.

"We believe CTERA is setting the standard for the modern hybrid data platform, with military-certified security and unparalleled performance," said Liran Eshel, Founder and Chairman of the Board of CTERA.

"The strategic partnership with PSG will enable us to further drive our expansion while delivering top service to our customers, and implement our vision for AI data services."

Ronen Nir, Managing Director at PSG, expressed optimism about the partnership, stating: "This investment is evidence of CTERA's robust business model and the opportunity it represents."

"We are excited to partner with CTERA as they embark on capturing what we believe will be an inflection point in the hybrid cloud data market, leveraging both organic and inorganic opportunities to strengthen CTERA's position and deliver even greater value to its customers."

The investment and strategic guidance from PSG are expected to further enhance CTERA's capacity to lead in the hybrid cloud data management market, particularly in integrating advanced AI capabilities. The collaboration aims to fortify CTERA's market position and fuel its growth, ultimately enriching the service provided to its extensive customer base.