CTERA announces growth investment from PSG Equity

Author: Simon Rowley

CTERA, a provider of hybrid cloud data management solutions, has raised $80 million (£61.4m) in primary and secondary funding from PSG Equity, a growth equity firm focused on software and technology-enabled services companies.

As part of the transaction, Ronen Nir, Managing Director at PSG, has joined CTERA’s board of directors alongside existing shareholders Benchmark, Bessemer Venture Partners, and Red Dot Capital Partners.

CTERA, named the top Leader and Outperformer in the GigaOm Distributed Cloud File Storage Radar for three consecutive years, combines an edge-accelerated global file system across public and private cloud environments with AI-based ransomware protection and data intelligence services. CTERA is at the core of hybrid cloud initiatives at some of the world’s largest banks, healthcare organisations, global media groups, and government agencies, in deployments that scale to tens of petabytes.

Unstructured data is a critical component of any enterprise storage strategy, representing about 80% of organisational data distributed across branch offices, endpoints, on-premises, and cloud data centres. Within this space, hybrid cloud file storage is one of the fastest-growing segments. According to Gartner, “By 2027, 60% of I&O leaders will implement hybrid cloud file deployments, up from 20% in early 2023.”.

The proliferation of AI technology helps make unstructured data management more crucial than ever before, as data access is needed not only for users and applications, but also for AI workflows. The new enterprise AI platforms depend on timely access to corporate data for training models and for augmented data retrieval 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,” says 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.”

“This investment is evidence of CTERA’s robust business model and the opportunity it represents,” adds Ronen Nir, Managing Director, PSG. “We are excited to partner with CTERA as it embarks 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.”

For more from CTERA, click here.