Insanely cool that they are able to do it in this incredibly volatile market.
HashiCorp Raises $175M at $5.1B Valuation
11–20 of 91 posts
Re: HashiCorp Raises $175M at $5.1B Valuation
#12Their execution is impressive. Very impressive. And, execution is what often separates the leaders from the pack, rather than some "unique" aspects. However, HashiCorp seems unique in a few regards: 1. A pioneer in monetizing OSS via SaaS services. 2. Many successes. Can't think of a recent startup in this space with so many successes - can you? Sentinel, Consul, Terraform etc. 3. Arguably at the start of the curve,…
You should take a look at Databricks, in all three dimensions.
Re: HashiCorp Raises $175M at $5.1B Valuation
#13They could not have more last minute timing. Now everything melts and the time of funny money is over.
Last Thursday, Axios contacted 40 VC firms and every single one said they were still actively investing: https://www.axios.com/venture-capital-open-business-dry-powd...
Re: HashiCorp Raises $175M at $5.1B Valuation
#14They could not have more last minute timing. Now everything melts and the time of funny money is over.
If they either turn Nomad into a full blown hypervisor stack or roll that into its own product, they could seriously put a dent in some extremely entrenched companies like VMware.
I'm talking storage, networking, virtualization... They'd make bank.
Re: HashiCorp Raises $175M at $5.1B Valuation
#15Their execution is impressive. Very impressive. And, execution is what often separates the leaders from the pack, rather than some "unique" aspects. However, HashiCorp seems unique in a few regards: 1. A pioneer in monetizing OSS via SaaS services. 2. Many successes. Can't think of a recent startup in this space with so many successes - can you? Sentinel, Consul, Terraform etc. 3. Arguably at the start of the curve,…
You should take a look at Databricks, in all three dimensions.
Databricks is easily the best spent money in my stack.
I also love Hashicorp's products, but unfortunately I'm not paying them anything. Before Terraform Cloud their enterprise offerings were quite bad IMO (no SaaS, had to talk with Sales, provision infrastructure yourself, high initial commitment, etc...).
I will probably start using Terraform Cloud in a near future thought, just waiting for some key features to be released so I can integrate it to my pipe (Gitlab Groups integration, more flexible module layout).
Re: HashiCorp Raises $175M at $5.1B Valuation
#16Just to note that the relative test code to production code ratio in Hashicorp products is 10:1 (10 lines of test for every line of code).
Re: HashiCorp Raises $175M at $5.1B Valuation
#17Series E have never been a good indicator for success, especially with the stock market behavior of late, and I don't see how HashiCorp's enterprise offerings are worth a 5.1B valuation. They've continuously struggled to find a good fit for their "enterprise only" features, and the amount of money they charge for these features is nothing short of extortion. Vault seems to be the only runway they have, and I see that area ripe for competition (or even AWS Vault like they did with MongoDB). Also, based on the company's glassdoor reviews, it seems the exec team are a bunch of jerks, which is an interesting contrast to Armon/Mitchell.
Unlike some of the other comments, I see HashiCorp as a textbook example of poor execution for converting customers. They clearly have the things people want, but they have always struggled to give people a reason to pay for them. They've created a community that would easily raze the goodwill they've floated on if they started to heavily monetize their products, so they're in a lose/lose situation to me.
I see them being acquired, but I can't think of any cloud provider that would pay for them. Maybe Oracle? :)
Re: HashiCorp Raises $175M at $5.1B Valuation
#18Series E have never been a good indicator for success, especially with the stock market behavior of late, and I don't see how HashiCorp's enterprise offerings are worth a 5.1B valuation. They've continuously struggled to find a good fit for their "enterprise only" features, and the amount of money they charge for these features is nothing short of extortion. Vault seems to be the only runway they have, and I see that…
I know of orgs who are writing 7 figure checks to Hashicorp without batting an eye. They are seeing rapid adoption in large enterprises who are willing to pay for it
https://stackshare.io/terraform
https://www.hashicorp.com/blog/category/case-study/
It seems like you don't think the value is there, and I supposed for some use cases that may be true, but I assure you they're getting paid for the value they're delivering (which is substantial).
Disclaimer: I am not associated with Hashicorp, just a satisfied user of their products who freely teaches Terraform and Vault usage and pays my own way to go to Hashiconf.
Re: HashiCorp Raises $175M at $5.1B Valuation
#19I wonder why HashiCorp needs to raise more money as they seem fairly profitable and in a very good position in the market? Why dilute your stocks and ownership of the company?
Re: HashiCorp Raises $175M at $5.1B Valuation
#20Earlier quoted context omitted.
Fantastic?! Hascicorp?!
It seems this company has a similar mode of operation as e.g. Docker: put a thin layer around Linux, and sell it as if it's something new.
What’s it like? To be so cynical that it makes you so blindingly wrong? Terraform, packer, consul, and vault are all ground up products that solve very interesting problems. Nomad is a solid product. They’re all written from the ground up.
How many third party companies do you think get pre-release access to AWS, Azure, and GCE and many others so that their software (in this case terraform) supports it the day of announcement?
Yeah.
Do you know major financial and government institutions are using vault? Do you know how long it takes those organizations to use security software as core parts of their business? Vault is barely 3 years old and is extensively used by them.
Where is the thin wrappper in Hashicorp’s case?