On the flip side, other companies like Uber and WeWork, which have each raised billions only to struggle to find business models and turn profits, have shown that VC dollars don't guarantee a road to success.īackblaze intentionally sought to avoid VC funding, even though it took some over the years, according to Budman. And 16 companies valued at $1 billion or more have gone or are expected to go public in 2021 despite having zero revenue, marking an all-time high since the dot-com boom. Spanx, though in another industry, went public just last month without taking a dime in outside funding. Revenue for the service grew 65% year over year, bringing in $14.2 million for the company in 2020.īackblaze, however, isn't alone in IPOing with limited funding and revenue. Now fourteen years after its founding, Backblaze believes its established the product and cultural foundation to go public, partially because of B2. According to Backblaze's website, B2 costs $0.005 per gigabyte of storage each month compared to $0.021 with AWS, $0.017 with Azure, and $0.020 with Google Cloud. Its B2 storage service is comparable to that of cloud giants, but is much cheaper. From B2 to IPOīackblaze sells itself as the affordable cloud storage alternative. And they each far surpassed Backblaze in revenue, reporting $318 million and $1 billion last year, respectively. Another competitor in the backup and storage space considering an IPO, Veeam, was funded to the tune of $500 million. So what's the motivation for Backblaze going public now? "We're actually hoping this shows that it is possible for companies to successfully become public companies without having to wait as long as some companies are feeling they need to wait today," Gleb Budman, CEO and co-founder of Backblaze, told Insider.įor comparison, DigitalOcean, which offers cloud storage competitive to Backblaze's B2 offering, raised $456.4 million before going public earlier this year. And regulatory filings show that last year, Backblaze booked a net loss of $6.6 million on revenues of $53.78 million - nothing to sneeze at, but it only represents a small piece of a market worth tens of billions. By the closing bell on Friday, Backblaze was trading at $22.04 a share, giving it a market cap of $645.18 million.īetween its founding in 20, San Mateo, California-based Backblaze raised less than $3 million in outside equity, followed by $10 million in convertible notes in August.
Backblaze nasdaq friday ipo 650mnovetcnbc software#
But unlike most cloud software startups, it got there without taking on the bonkers levels of venture capital that has become commonplace in the industry. Backblaze's CEO says he wants to prove high revenue and VC backing aren't needed to go public.Ĭloud backup and storage service Backblaze debuted on the Nasdaq exchange Thursday, priced at $16 per share and popping 24.38% by the end of the day.
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