Tech Funding News reports that Vates, the Grenoble-based company behind the open source XCP-ng hypervisor and Xen Orchestra management console, raised €30 million from IRIS’s Growth fund and Bpifrance’s Large Venture fund to scale its open-source alternative to VMware as Broadcom’s takeover pushes customers to rethink their virtualisation vendors. Co-founders Olivier Lambert, Nithida Vialle and Julien Fontanet remain majority shareholders, and CEO Lambert said the round accelerates the strategy the company has pursued from the start rather than changing it and will not compromise its independence or open source principles. Vates has grown without a large outside cheque since 2012, has been profitable and self-funded since 2016, serves more than 1,000 customers in about 100 countries, draws 90% of its revenue from outside France with North America close to half its business, and reported 65% growth in 2025. It will spend the money on the next generation of its platform covering performance, storage, security, automation, large-scale virtualisation and AI workloads, on sales and marketing in North America and key European markets, and on a larger partner network for bigger migrations, pitching interoperability, reversibility and freedom of choice against larger rivals such as Nutanix, Platform9 and Broadcom’s VMware.
Vates raises €30M to scale its open-source virtualisation stack against VMware
Tech Funding News reports that Vates, the Grenoble-based company behind the open source XCP-ng hypervisor and Xen Orchestra management console, raised €30 million from IRIS's Growth fund and Bpifrance's Large Venture fund to scale its open-source alternative to VMware as Broadcom's takeover pushes customers to rethink their virtualisation vendors. Co-founders Olivier Lambert, Nithida Vialle and Julien Fontanet remain majority shareholders, and CEO Lambert said the round accelerates the strategy the company has pursued from the start rather than changing it and will not compromise its independence or open source principles. Vates has grown without a large outside cheque since 2012, has been profitable and self-funded since 2016, serves more than 1,000 customers in about 100 countries, draws 90% of its revenue from outside France with North America close to half its business, and reported 65% growth in 2025. It will spend the money on the next generation of its platform covering performance, storage, security, automation, large-scale virtualisation and AI workloads, on sales and marketing in North America and key European markets, and on a larger partner network for bigger migrations, pitching interoperability, reversibility and freedom of choice against larger rivals such as Nutanix, Platform9 and Broadcom's VMware.
Source: Techfundingnews