Today we're excited to share that Vantage has closed $4M of seed fundraising led by Andreessen Horowitz with additional participation from Brianne Kimmel, Stephanie Friedman, Julia Lipton, Jacqueline De La Rosa, Calvin French Owen, Ben Uretsky, Moisey Uretsky, Mitch Wainer, Justin Gage, Jeff Weinstein and Marc Bhargava
Public cloud infrastructure and service costs are projected to be over $100B+ in 2021 and becoming increasingly more difficult to track, analyze, budget and forecast on. As organizations grow in cloud adoption, so too does the complexity of their underlying costs. In a recent Flexera report, it is estimated that up to 30% of cloud spend is waste. In the same report, survey respondents have said their top challenges include reporting and visibility of where their costs are coming from. This problem extends down to startups where typically developers, who are rightfully focused on building their business, do not fully understand where their costs are coming from and how infrastructure changes impact those costs.
Cloud costs are becoming a first-order metric that developers look at on a regular basis and as startups mature, so too does the focus on their gross margins which are increasingly weighed down by cloud costs. We believe that we're in the very early innings of FinOps, shorthand for "Cloud Financial Operations". As organizations mature in their understanding and their accounting of cloud infrastructure spend, the use-cases and demands they have for accompanying software are also growing.
Vantage's mission is to build a suite of tools which make it easy for engineering, leadership and finance to analyze, collaborate on and optimize their cloud infrastructure costs. We will be using this investment to scale the team.