Seattle-based venture-backed startup, CoreStack, a company empowering enterprises to achieve continuous and autonomous cloud governance at scale, has announced an $8.5 million Series A funding round. The investment round brings CoreStack’s total funding to $13 million.
The Series A financing follows a record year of growth for CoreStack which saw a rapidly expanding roster of enterprise clients across U.S., Europe and India, key executive appointments, and significant market traction with enterprises adopting CoreStack as governance landing zone for large scale cloud adoption.
The new funding round would help CoreStack aggressively expand its sales and marketing efforts as well as accelerate product development.
The funding round was led by Naya Ventures alongside participation from other strategic investors. Naya Ventures’ Managing Director, Dayakar Puskoor, will join CoreStack’s Board of Directors.
Gartner Cloud Management Platforms – 2020
“CoreStack’s offering is well-timed with the rapidly increasing demand for enterprise cloud governance,” said Puskoor, Managing Director of Naya Ventures. “We believe enterprises will continue to ensure that their increasing investment in multiple clouds is protected with strong governance. The company has made impressive strides in the marketplace and we are excited to partner with CoreStack in their journey as they continue building a great company.”
Gartner has recognized Corestack both in its Magic Quadrant for Cloud Management Platforms – 2020 and Cool Vendors in Cloud Computing – 2019. The company was recently awarded a U.S. Patent on Orchestration of Multiple Cloud Platforms and Services. CoreStack is a Microsoft Azure Gold & Co-sell Partner and Amazon AWS Advanced Technology Partner.
CoreStack enables enterprises to continuously and autonomously keep their cloud infrastructure compliant with industry standards and regulations while providing a “significant” boost in IT operational efficiencies. According to CoreStack, their customers typically see annual cloud cost savings of 20-60% when they use the CoreStack Cloud Governance solution.
CoreStack’s Autonomous Enterprise Cloud Governance provides customers with:
- Continuous compliance with automatic issue resolution for industry standards and regulatory frameworks such as FedRAMP, NIST, HIPAA, ISO, PCI DSS, AWS WAF, Azure CIS, and AWS CIS.
- Centralized view of multiple cloud accounts and their access by user and cloud service combined with intelligence on how the access is utilized and identifying and fixing violations automatically.
- Cloud Ops automation using operational guardrails for monitoring, alerts, backups, resource locks, activity, and logging.
- Overall cloud spend visibility and enterprise level budget controls, spend tracking and identification of potential cost-saving opportunities.
“As enterprises rapidly embrace cloud as a part of their digital transformation initiatives, there is an increasing need for continuous and autonomous governance across compliance, security, operations, cost and consumption,” said Ezhilarasan Natarajan, CEO and co-founder of CoreStack. “We’re at the cutting edge of this innovation, as has been substantiated by recent recognitions by Gartner, but we fully recognize we can’t do this alone.”
“The financial partnership and enterprise expertise of Naya Ventures as well as the continued support of Z5 Capital and other investors will immensely help to accelerate the execution of our vision,” added Natarajan. “We’re beyond thrilled and I join the entire CoreStack team in warmly welcoming Naya Ventures on board.”
About Naya Ventures
Naya Ventures is an U.S. and India based venture capital firm investing in early stage B2B companies. Founded with the thesis of being a fund consisting of entrepreneurs investing in entrepreneurs, Naya helps its portfolios through hands-on support in the areas of product and market development. Naya has invested in over 20 companies and has generated five exits to date.
Some examples of Naya’s value add model include: Kore.ai, Altia Systems (acquired for $125M), Hyperverge, Docsynk, and others. Naya Venture’s portfolio enterprise value exceeds $1B, and the fund is actively investing in ambitious entrepreneurs looking to partner with investors who have been in their shoes.