VAST Data more than doubling valuation in new raise

Israeli data storage management solutions company VAST Data, which is run from the Exhibition Grounds in Tel Aviv and from offices in the US, is on the final straight of an investment round of $1 billion, at a valuation of $25 billion.

This is in addition to several hundreds of million of dollars more for the purchase of shares from the founders, veteran employees, and existing investors, in a secondary round. The valuation of the company for the purposes of the secondary round is estimated at $15-20 billion.

The valuation represents an impressive rise since the company’s previous round. In November 2023, VAST Data raised $118 million at a valuation of $9.1 billion in a round led by Fidelity Management & Research Company. Last October, there were reports in the US media that the company was close to an investment round at a valuation of $30 billion led by Nvidia, CapitalG, and Bridgespan VC. It now appears that these estimates were higher than the planned valuation, although in comparison with its previous round the valuation is still more than double.

If the round goes ahead, company founders Renen Hallak, Shachar Fienblit, Jeff Denworth, and Alon Horev, early investors such as Greenfield Partners, Israeli-British fund 83North (which has ceased activity), and DTC, will gain millions of dollars. Longstanding employees who have managed to convert options to shares will also be able to benefit from the exit.

The company initially considered an IPO in New York, but the cool atmosphere on the market and the poor performance of most of the technology companies floated last year dissuaded it from doing so. The company is also constantly examining acquisition offers.

“Globes” has learned that VAST Data’s annual recurring revenue at the end of 2025 was $350-400 million, and that the company is growing in leaps and bounds thanks to the AI revolution. VAST Data was founded as a provider of solutions that enable companies to manage data storage across different resources, such as the public or private cloud. The rise of AI accelerated the use of its technology as part of a software protocol that it wrote especially for the new set of data, capable of storing, locating, and extracting AI information more efficiently.

Two Israeli companies dominate this market. Besides VAST Data, Israeli-US company WEKA is also growing rapidly thanks to the trend. WEKA has raised $415 million to date and was valued at $1.4 billion in 2024, according to PitchBook.