Spotinst – an Israeli cloud workload management company today announced it has raised a US$15 million Series A funding round led by Intel Capital and Vertex Venture, a network of funds that operate as the investment arm of Temasek Holdings.
This financing round will bring Spotinst’s total equity funding to US$17.6 million, in which the capital will be used to help the company grow and achieve its vision of becoming a cloud of clouds.
Founded in 2015 by Amiram Shachar, Liran Polak and Aharon Twizer, Spotinst enables businesses to optimize their cloud utilization at a lower cost, as compared to renting a traditional virtual machine.
This is achieved through the automation of a machine learning-based virtual IaaS platform that allows businesses to access cloud workload management capabilities and more efficiently deploy their cloud resources.
Its core technology is based on a predictive algorithm that aims to deliver the most effective cloud option while ensuring reliability and stability.
The startup also claims to save customers up to 80 percent on cloud computing costs, with the company currently working with Amazon Web Services. It recently introduced support for Google Cloud Platform and Microsoft Azure.
Since launching 18 months ago, the company claims that it has proven the concept through the sale of millions of spot instances per week as the company enable users to tap unused cloud computing capacity and power.
“When we floated the idea of virtual cloud infrastructure two years ago, many said that it could not be done,” said Founder and CEO of Spotinst Amiram Shachar.
“But since then companies and developers voted with their workloads. We appreciate their confidence and support from our investors. The proceeds will help Spotinst grow, and take us closer to our vision of a cloud of clouds.”
Over the last year, Spotinst posted growth of 30 percent month over month, and now manages hundreds of millions of computing hours for its customers.
Aviad Ariel, the General Partner of Vertex Ventures said, “We liked the value proposition of making the cloud less-expensive, and the impressive product-market fit that the Spotinst team achieved.”