New round of financing led by Lightspeed Venture Partners caps incredible 2018 with strong financial results, service innovation, and stellar customer growth
Cato Networks, the cloud-native carrier, has announced an investment of $55M led by Lightspeed Venture Partners with the participation of all current investors — Aspect Ventures, Greylock Partners, Singtel Innov8, USVP, and co-founders Shlomo Kramer and Gur Shatz.
This investment brings the total funding raised to date to $125M. The new funding caps an incredible 2018 that saw bookings grow by 352% year-over-year with business from the channel increasing fivefold. Over 300 enterprises worldwide with thousands of branch locations across all verticals now rely on Cato to connect and secure their corporate networks.
Funding to Accelerate Cato’s Strategic Vision
The new funding demonstrates the investors’ confidence in Cato’s vision of a global, cloud-native carrier, connecting and protecting all enterprise locations, mobile users, and cloud resources.
“Cato is a transformative force in the stagnant managed network services market,” says Yoni Cheifetz, Partner at Lightspeed. “Businesses are looking for an affordable, agile, and scalable network to drive strategic initiatives like global expansion, hybrid cloud, and workforce mobility. Today’s rigid networks aren’t built to support this growth and this is the multi-billion dollar market opportunity Cato is going after.”
“We are excited to have Lightspeed join our journey to build the new network for the business,” said Shlomo Kramer, CEO and co-founder of Cato Networks. “Cato goes beyond edge SD-WAN, MPLS, and network security point solutions, to offer a full WAN transformation platform. Cato closes the huge gap between the needs of the digital business, and the rigid, slow, and expensive networks provided by legacy telcos, using a groundbreaking cloud-native carrier architecture. Cato is powered by cloud-scale software, self-service management, and elastic compute and bandwidth to provide the new foundation for the growth of the business.”
Massive Customer Growth
Cato is seeing stellar growth in customer adoption. During 2018, Cato expanded its customer base to over 300 enterprises, signed up its first 1000-site organization, and added several enterprises with more than 30,000 employees. Select customers shared their Cato experiences:
◾Centrient Pharmaceuticals (formerly DSM Sinochem Pharmaceuticals), a global pharmaceutical company, replaced its global MPLS network with Cato. “MPLS was about 4x more than Cato for a quarter of the bandwidth,” says Matthieu Cijsouw, the Global IT Manager at Centrient, “With Cato Cloud, not only did I receive a more agile infrastructure, but I also received an agile partner who can keep up with my needs. We operate faster because of Cato.”
◾Innovex Downhole Solutions, a worldwide leader in oil drilling, transformed its 20+ site MPLS network with Cato. “When we first heard the value proposition we thought, ‘This is too simple we’re missing something,’” says Don Williams, Corporate IT Director at Innovex, “My network engineer and I kept wondering how can we get so much more for so much less?”