Year invested: 2020
Sector: Enterprise software (content security, compliance and collaboration)
Egnyte provides software solutions for content collaboration, protection, compliance, and threat prevention. The Company’s platform enables businesses to move data to and from the cloud, ensure that files are properly routed and protected, in addition to identifying unusual behavior to safeguard information against insider threats and protect against ransomware attacks. IT leaders use Egnyte to manage and control a full spectrum of risks, including accidental data deletion, data exfiltration, regulatory compliance, lifecycle management and content privacy. Business users rely on Egnyte to work and collaborate from any cloud and on any device. Egnyte was founded in 2008 and is headquartered in Mountain View, California.
We believe that Egnyte is a leader within the $10+ billion market for content compliance and collaboration. The Company serves over 17,000 small and mid-sized organizations and ranks as the #1 data governance and collaboration solution on software review portal G2. Consistently best-in-class gross and net retention rates demonstrate Egnyte’s critical role and relatively high switching costs given the platform’s integration with various content repositories and business productivity applications. At a macro level, we believe that Egnyte’s addressable market is poised to grow with secular tailwinds around the proliferation of mobile devices, remote work, data compliance, content security and expanding enterprise perimeters.
We are impressed by Egnyte’s demonstrated ability to verticalize the platform, with a majority of bookings originating from enterprise use cases within life sciences, financial services, as well as architecture, engineering and construction. We believe that vertical industry demands cannot easily be addressed without customization efforts by all-purpose platforms such as Sharepoint, providing a major competitive advantage to Egnyte. As a customer, we use the platform to manage and protect Springcoast’s internal files and folders. As an investor, we are excited to support the Company in further expanding its leadership position.