On-demand hybrid cloud software startup Velostrata raises $14m Series A


On-demand hybrid cloud software startup Velostrata, Inc. has raised $14 million Series A in a round led by Norwest Venture Partners and Greylock IL Partners (83North).

Founded in 2014, Volostrata is offering what it calls the industry’s first real-time hybrid cloud solution that streams production workloads to and from the cloud in minutes.

The company’s platform enables on-demand hybrid cloud for production workload through a patent-pending technology that decouples compute from storage, enabling enterprises to stream production workloads to and from the cloud, leaving the storage on-premises and optimizing performance end-to-end.

Velostrata claims that their solution means that no changes to existing applications, images or storage within the enterprise are required; the short version is that a customer continues using the same tools and processes to manage existing workloads, with Velostrata delivering the ability to move workloads to and from the cloud at the click of a button, in a low-risk, cost-effective, fast and simple way.

“Every CIO is being asked by their management team and board to migrate enterprise infrastructure to the cloud, yet a mere fraction of IT spending goes toward cloud services,” General Partner at Norwest Venture Partners Dror Nahumi said in a statement. “Adoption is low because current cloud migration technologies are plagued by challenges like security and compliance risks, cost, migration time, complexity and vendor lock-in.”

“Velostrata provides an innovative hybrid cloud approach that eliminates all these challenges and empowers Chief Information Officers to accelerate the migration quest using an evolutionary, secure and highly cost-effective platform.”


As more and more companies move towards cloud solutions, the ability to work with legacy systems, let alone the security issues many would face, often creates friction when they pursue a path to the cloud, be that internally through legal, management and information system team issues.

Velostrata wants to make the move frictionless by delivering no-compromise hybrid clouds that are able to stream production workloads to and from the cloud while still leaving storage on-premises as well.

The Series A round was the first reported funding for Velostrata.

The company said it would use the funding to further develop the product roadmap and build out its sales, marketing and support teams in North America and Europe.

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