The only one feeling better than the 14 OSS companies that raised over $650mm in the past two weeks is Tyson Fury aka “The Gypsy King”. Despite recent turbulent market conditions and relatively flat performance of the COSS index this year, investors continue to see opportunities in the segment.
Also of note, Kubecon is being held both virtually and physically in Los Angeles this week. Kubecon is the Cloud Native Computing Foundations (CNCF) flagship conference that gathers adopters and technologists from around the world. The CNCF is building a vendor-neutral sustainable ecosystem for cloud native software that has become home to several of the fastest growing open source projects in the world and has over 138k contributors and over 6.8mm contributions!
The folks at Kubecon put together a handy letter to convince your boss to go and we’ve added some their notes below:
For 67% of attendees this was their first KubeCon making it a great place for newcomers to the cloud native community to learn.
The top two reasons that people attended KubeCon + CloudNativeCon were for education (65%) and networking (26%).
44% of attendees were developers with 77% in technical positions overall.
8,171 companies participated, with the majority from the Information Technology sector (63%)
We don’t have an incredible interview this week (although we have some good stuff in store), so we’ll leave you with this incredible GIF.
Private Markets
Chronosphere, building data observability tools, announced their $200M Series C led by General Atlantic.
Solo.io, building service mesh tools for application networks, announced their $135M Series C led by Altimeter Capital.
Esper, helping organizations remotely scale, manage, secure, and update connected devices with DevOps practices, announced their $60M Series C led by Insight Partners.
Materialize, building a streaming database for real-time analytics, announced their $60M Series C led by Redpoint Ventures.
Gretel, building privacy engineering as a service, announced their $50M Series B led by Anthos Capital.
TONIC, helping developers mimic their existing production data, announced their $35M Series B led by George Matthew at Insight Partners.
ArangoDB, building an open source graph database, announced their $27.8M Series B led by Iris Capital.
Forta, a smart contract security project from OpenZepplin, announced their $23M in funding by a16z.
Pluribus Networks, enabling distributed cloud networking, announced their $20M funding round led by Morgan Stanley Expansion Capital.
Appsmith, making low-code tools for internal business app development, announced their $8M Series A and $2.5M Seed led by Accel, Canaan Partners, and Bessemer.
Appwrite, building an open-source backend-as-a-service, announced their $10M Seed led by Bessemer Venture Partners and Flybridge.
RunX, making it easier for developers to deploy cloud infrastructure, announced their $4.1M Seed led by Unusual Ventures.
Orchest, building an integrated development pipeline for data scientists, announced their $3.5M Seed led by Gradient Ventures and Basis Set Ventures
Wasp, building a language for quickly programming business logic, announced their $1.5M Seed led by Lunar Ventures and HV Capital.
Public Markets
To track the performance of COSS companies, we’ve created an equal-weighted index comprised of public names including: Kaltura, Couchbase, Confluent, MongoDB, Elastic, Talend (acq. by Thoma Bravo announced), Cloudera (acq. by KKR/CD&R announced), Rapid7, Fastly and Jfrog.
The COSS Index traded back down to netrual over the last two weeks as the broader market indices lost 4% each.
COSS Index +0%
NASDAQ +12%
S&P 500 +16%
The COSS Index pulled ahead of the NASDAQ over the last three year lookback.
COSS Index +102%
NASDAQ +93%
S&P 500 +57%
COSS companies continue to trade near their highest level in five years (and over 2x their average) but have traded down over the last two weeks in line with the market. All three indices continue to trade significantly higher than their rolling five-year average.
COSS Index: Current Multiple 18.3x | Five-Year Mean: 8.7x
Emerging Cloud Index: Current Multiple 13.8x | Five-Year Mean: 9.8x
NASDAQ Composite: Current Multiple 4.3x | Five-Year Mean: 3.3x