Investment led by Forgepoint Capital; Next-generation platform developer will use funds to accelerate the development of NATS.io for edge AI and multi-cloud applications
Synadia Communications, Inc., creators and maintainers of NATS.io (NATS), the open-source cloud and edge-native messaging system for high-performance data streaming, announced it has closed a $25 million Series B financing round. Led by Forgepoint Capital, the investment round includes participation from existing investors and new investors Singtel Innov8, LDVP and 5G Open Innovation Lab. Forgepoint Managing Director Ernie Bio will join Synadia’s board of directors.
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The round brings Synadia’s total funding to $51 million raised to date and further validates the company’s holistic approach to solving the increasingly complex and pervasive challenges of distributed computing, which is driving rapid growth in edge computing investments. The recent Worldwide Edge Spending Guide from International Data Corporation (IDC) predicts that the worldwide edge computing market will reach $250.6 billion in 2024 with a compound annual growth rate (CAGR) of 12.5% from 2019 to 2024.
The latest round of funding will enable Synadia to further accelerate the growth of NATS.io, the connective platform used by tens of thousands of companies daily to extend their digital services to the edge. For leading enterprises such as Rivian and Walmart to rapid growth startups like Replit and Personal.AI, NATS is becoming the defacto platform for delivering newly developed edge applications where data and micro-services needs to be accessed closer to the user whether for performance or to reduce escalating cloud costs. These new applications span areas such as AI/ML, real-time customer experience, immersive retail, and industrial IoT.
“Companies are increasingly shifting beyond the cloud to the edge to better anticipate and address customer and operational needs of speed and data management. As they do this, legacy technologies are not built for distributed cloud architecture and optimizing user experience,” said Bio. “Synadia has experienced rapid growth and widespread customer adoption due to the flexibility and reliability of its Adaptive Edge platform and its ‘secure by design’ architecture which meets the growing industry demand to improve performance.”
Founded in 2017 by CEO Derek Collison, the creator of NATS, Synadia entered the market to address the challenges of edge and multi-cloud computing. It has established itself as a leader in developing and supporting highly available, low-latency applications and microservices for multi-cloud and edge environments.
“Building on the rapid success of the NATS open-source project, our Synadia Cloud and Synadia Platform offerings continue to drive exceptional value,” said Collison. “With the support of Forgepoint Capital and our other investors, Synadia is well-positioned to provide real-time and secure access to services and data in any geography, with any cloud provider, and at any edge location. This funding further validates our product-market fit, accelerates our momentum, and underscores the significant opportunity in front of us to further power the proliferation of modern distributed systems.”
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“By partnering with Synadia to run NATS, we have seen great improvements in performance over our existing communication layer, while reducing costs,” said Franco Sabini, Head of IT, Trading Online at Fineco, the number one bank in Italy according to the Forbes World’s Best Banks List 2022. “NATS provided us with superior performance over competitive systems. When we factored in that it also has a key-value (KV) store built in, and does not require us to run load balancers or service meshes, we have reduced complexity and thereby costs by nearly three times.”
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