Blog Post

Egnyte nets $29.5 million in cash to raise its profile outside the valley

Egnyte just netted $29.5 million in Series D cash, bringing total venture investment in the enterprise file share company to $61.5 million.

The round will help expand sales and marketing operations outside Egnyte’s Mountain View, Calif. headquarters and there are plans for new offices in the Pacific Northwest, New York, Florida and Chicago, as well as to pump up efforts in Europe, the Middle East and Africa, CEO Vineet Jain said via email.

The company also plans to staff up more in engineering in Silicon Valley and to triple R&D headcount in eastern Europe. Funding comes from Seagate, CenturyLink/Savvis(s ctl), Northgate, and from existing backers Kleiner Perkins Caufield & Byers Google Ventures, Polaris and an “unnamed major storage vendor.”

Egnyte has its work cut out for it on the marketing front, where it must contend with Box and Dropbox’s enterprise push. Box announced $100 million in new investment last week, bringing its total up to an eye-popping $400 million. Dropbox is an even bigger fish, seeking $250 million in new funding, although truth be told the $8 billion valuation the company is seeking seems a stretch.

Other competitors include Accellion, EMC Syncplicity(s EMC), ownCloud which just netted new funding and a new release, and SugarSync, which interestingly, just announced plans to cut its freemium version. Nearly all of these companies use free versions to build market share, if not profitability.

Cloud-based file sharing for business may be a big pond, but there are an awful lot of big fish in there.

2 Responses to “Egnyte nets $29.5 million in cash to raise its profile outside the valley”

  1. Honestly the pricing of cloud-based file sharing for Enterprises offered by these companies are quite expensive (150-200$ per user license). Irrespective of the hype, most mid size and enterprises go for just few licenses or for a particular department needs to just test the water.

    They are new comers like Tonido FileCloud ( who offer excellent user experience, better functionality and more value for the money (The pricing is 1/5 th of Dropbox, Egnyte, Box or Accellion). Further, the organizations can host the system in side firewall using thier own hardware.

  2. Paula Skokowski

    Interesting observation that nearly all of these companies that are taking in additional VC funding are using free versions to build market share and are now pursuing the enterprise market. It’s notable that one of the companies you mention, Accellion, who already has a large footprint in the enterprise market for file sharing, is focussed solely on fee-paying enterprise users.