Spotinst, a workload management platform for cloud computing, has raised $35 million in a Series B round led by Highland Europe. Leaders Fund,Highland Capital Partners, Intel Capital, and Vertex Ventures also participated in the round. Spotinst has raised a known total of $52 million since its launch, according to the company.
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Founded in 2015, the Tel Aviv-based startup has developed software aimed at helping enterprises work with different cloud providers manage their cloud computing infrastructure. It reduces operational costs through its Elastigroup product.
With Spotinst Elastigroup service, algorithms identify spot instances, or areas of excess cloud capacity. The software automatically migrates operating applications to those spot instances in Amazon Web Services, Microsoft Azure, and Google cloud data centers. The cost of operating applications within spot instances is much cheaper than on-demand services. Spotinst claims that the system enables companies to reduce infrastructure compute costs by 80 percent.
Spotinst currently has over 1,000 enterprise customers. The majority of those customers are located in North America and Europe and include Sony, Samsung, Qualcomm and Ticketmaster, per its release. With this round, the company, which currently has a headcount of 100 across its offices in San Francisco, New York, and Tel Aviv, plans to double the size of its team within the next year.
This is the latest enterprise tech company to enjoy investor interest. With more companies looking to find better ways to execute applications and organize the infrastructure those applications are built on, enterprise tech startups reducing workload while handling those management tasks are likely welcome allies.
Illustration Credit: Li Anne Dias
Editorial Update: This post has been updated to reflect that Highland Europe (Highland Capital Partners’s European branch) led the round.