Synadia Communications, Inc., creators and maintainers of NATS.io (NATS), the open-source cloud and edge-native messaging system for high-performance data streaming, today announced it has closed a $25 million Series B financing round. Led by Forgepoint Capital, the investment round includes participation from existing investors and new investors Singtel Innov8, LDVP and 5G Open Innovation Lab. Forgepoint Managing Director Ernie Bio will join Synadia's board of directors.
The round brings Synadia's total funding to $51 million raised to date and further validates the company's holistic approach to solving the increasingly complex and pervasive challenges of distributed computing, which is driving rapid growth in edge computing investments. The recent Worldwide Edge Spending Guide from International Data Corporation (IDC) predicts that the worldwide edge computing market will reach $250.6 billion in 2024 with a compound annual growth rate (CAGR) of 12.5% from 2019 to 2024.
The latest round of funding will enable Synadia to further accelerate the growth of NATS.io, the connective platform used by tens of thousands of companies daily to extend their digital services to the edge. For leading enterprises such as Rivian and Walmart to rapid growth startups like Replit and Personal.AI, NATS is becoming the defacto platform for delivering newly developed edge applications where data and micro-services needs to be accessed closer to the user whether for performance or to reduce escalating cloud costs. These new applications span areas such as AI/ML, real-time customer experience, immersive retail, and industrial IoT.
"Companies are increasingly shifting beyond the cloud to the edge to better anticipate and address customer and operational needs of speed and data management. As they do this, legacy technologies are not built for distributed cloud architecture and optimizing user experience," said Bio. "Synadia has experienced rapid growth and widespread customer adoption due to the flexibility and reliability of its Adaptive Edge platform and its 'secure by design' architecture which meets the growing industry demand to improve performance."
Founded in 2017 by CEO Derek Collison, the creator of NATS, Synadia entered the market to address the challenges of edge and multi-cloud computing. It has established itself as a leader in developing and supporting highly available, low-latency applications and microservices for multi-cloud and edge environments.