Spectro Cloud Closes $75m Series C Led by Growth Equity at Goldman Sachs Alternatives

Rhea-AI Summary

Spectro Cloud has secured a $75 million Series C funding round led by Growth Equity at Goldman Sachs Alternatives. The company, specializing in multi-cluster Kubernetes management, has achieved triple-digit Annual Recurring Revenue (ARR) growth for three consecutive years. The funding will support product innovation, particularly in edge computing, enhance customer experience, and expand partnerships. The company's Palette platform serves various industries including technology, manufacturing, retail, healthcare, and defense, helping organizations manage Kubernetes deployments across data centers, cloud, and edge environments.

Positive

• Secured $75 million Series C funding from Goldman Sachs Alternatives
• Triple-digit ARR growth for three consecutive years
• Diverse customer base across multiple industries
• Strong market position in Kubernetes management solutions

Negative

• None.

Insights

Financial Analyst

The $75M Series C funding round led by Goldman Sachs Growth Equity marks a significant milestone for Spectro Cloud, demonstrating strong institutional confidence in their Kubernetes management platform. The company's impressive triple-digit ARR growth for three consecutive years indicates robust market demand and successful execution. The funding will strengthen their market position in the rapidly growing cloud-native infrastructure space.

Goldman Sachs' investment validates the market opportunity in multi-cluster Kubernetes management, particularly in edge computing and AI applications. The addition of Michael Reilly to the board adds strategic value and deepens the relationship with a major financial institution. This funding round positions Spectro Cloud to capitalize on the increasing enterprise adoption of containerized applications and edge computing solutions.

Tech Expert

Spectro Cloud's Palette platform addresses critical pain points in enterprise Kubernetes adoption across hybrid environments. Their focus on bare metal deployments for VM and GPU management, coupled with AI inference at the edge, aligns perfectly with emerging enterprise needs. The platform's ability to manage Kubernetes clusters across data centers, cloud and edge environments positions them uniquely in the market.

The timing is strategic as organizations struggle with the complexity of transitioning from VM-based to containerized applications. The emphasis on edge computing and AI workloads demonstrates foresight into where enterprise IT is heading. This investment will likely accelerate product development in these high-growth areas.

Funds Will be Used to Fuel the Transformation of Kubernetes Management at Scale Across Data Centers, Cloud, and the Edge

Spectro Cloud has Grown Annual Recurring Revenue (ARR) by Triple Digits Year-over-Year for Three Consecutive Years

SAN JOSE, Calif.--(BUSINESS WIRE)-- Spectro Cloud, a leader in modern multi-cluster Kubernetes management at scale across a variety of deployment environments, including on-premises hardware, single and multi-cloud, and the edge, today announced it has completed a $75 million Series C funding round led by Growth Equity at Goldman Sachs Alternatives with participation from existing Spectro Cloud investors. The investment comes at a turning point of complexity in the IT industry, with the evolution from legacy, virtual machine (VM)-based applications to a containerized, cloud native ecosystem, with artificial intelligence (AI) driving an explosion of use at the edge.

Spectro Cloud closes $75m Series C funding round, led by Growth Equity at Goldman Sachs Alternatives. Learn more at spectrocloud.com. (Graphic: Business Wire)

Leading organizations across industries (including technology, manufacturing, retail, oil & gas, healthcare, telecommunications, defense and intelligence agencies) are relying on Spectro Cloud’s Palette software platform to help accelerate their Kubernetes adoption. By helping companies improve operating efficiency and more effectively run mission-critical application workloads, Spectro Cloud has achieved three consecutive years of triple-digit ARR growth.

“What IT leaders need today is a modern approach to comprehensive, full lifecycle management for Kubernetes at scale, one that is optimized to support the unique needs of data centers, clouds, and the edge,” said Tenry Fu, CEO and co-founder of Spectro Cloud. “We founded Spectro Cloud five years ago aiming to make Kubernetes easy to manage and consume in any environment, and this investment from Goldman Sachs is validation of the tremendous opportunity we have ahead of us.”

“In the past five years, Spectro Cloud has established itself as a leader in helping organizations realize the true potential of Kubernetes and cloud native technologies, making it more accessible and manageable at scale, across any environment,” said Michael Reilly, an Investor at Growth Equity at Goldman Sachs Alternatives who will be joining Spectro Cloud’s Board of Directors. “The incredible success Tenry and his team have achieved proves that enterprises are realizing the value. We are excited for the opportunity ahead in multi-cluster environments, especially bare metal deployments in data centers for VM and GPU management, and AI inference at the edge, which could drive tremendous growth.”

Spectro Cloud will use its Series C funding to accelerate product innovation, particularly in the uniquely complex area of edge computing, and to invest in continuing to offer award-winning customer experience and support, and scale new go-to-market partnerships and technology alliances.

To see Spectro Cloud’s Palette platform in action, book a demo at spectrocloud.com or visit booth #1396 at AWS re:Invent in Las Vegas, and booth #639 at Gartner IOCS in Las Vegas.

Read the announcement blog here.

About Spectro Cloud

Spectro Cloud uniquely enables organizations to deploy and manage Kubernetes in production, at scale. Its Palette enterprise Kubernetes management platform gives Platform Engineering, IT Operations and DevOps teams effortless control of the full Kubernetes lifecycle. With support for both VM and container workloads, Palette is a truly unified management platform across clouds, data centers, bare metal and edge environments. IT Operations teams are empowered to support their developers with curated Kubernetes stacks and tools based on their specific needs, with granular governance and enterprise-grade security. Spectro Cloud is a Gartner Cool Vendor, CRN Tech Innovator, and a ‘leader’ and ‘outperformer’ in GigaOm’s 2024 Radars for Edge Kubernetes and Managed Kubernetes.

Co-founded in 2019 by CEO Tenry Fu, Vice President of Engineering Gautam Joshi and Chief Technology Officer Saad Malik, Spectro Cloud is backed by Alter Venture Partners, Boldstart Ventures, Firebolt Ventures, Growth Equity at Goldman Sachs Alternatives, NEC and Translink Orchestrating Future Fund, Qualcomm Ventures, Sierra Ventures, Stripes, T-Mobile Ventures, TSG and WestWave Capital.

For more information, visit https://www.spectrocloud.com or follow @spectrocloudinc and @spectrocloudgov on X.

About Growth Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $3.1 trillion in assets under supervision globally as of September 30, 2024. Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241119538933/en/

PR contacts:

Spectro Cloud: Ant Newman – ant@spectrocloud.com

Goldman Sachs: Victoria Zarella – victoria.zarella@gs.com

Source: Spectro Cloud

FAQ

How much did Spectro Cloud raise in their Series C funding round led by GS?

Spectro Cloud raised $75 million in their Series C funding round led by Growth Equity at Goldman Sachs Alternatives.

What is Spectro Cloud's revenue growth rate over the past three years?

Spectro Cloud has achieved triple-digit Annual Recurring Revenue (ARR) growth for three consecutive years.

What will Spectro Cloud use the Series C funding for?

The funding will be used to accelerate product innovation, particularly in edge computing, enhance customer experience and support, and scale new go-to-market partnerships and technology alliances.

Which industries does Spectro Cloud serve?

Spectro Cloud serves various industries including technology, manufacturing, retail, oil & gas, healthcare, telecommunications, defense and intelligence agencies.