A group of entrepreneurs who previously sold their business to Amazon and created a new division within AWS is now launching a new venture aimed at transforming how companies back up their cloud infrastructure. Their company, Eon, has just emerged from stealth mode with a product, a customer base, $127 million raised across three funding rounds, and a post-money valuation of $750 million.
Eon secured $20 million in Seed funding led by Sequoia Capital, with participation from Vine Ventures, Meron Capital, and Eight Roads. This was followed by a $30 million Series A led by Lightspeed Venture Partners, and a $77 million Series B led by Greenoaks with support from Quiet Ventures. The company, which began operations in January 2024, has headquarters in both Israel and New York.
While infrastructure backups have been a staple in IT for many years, dating back to when companies relied on physical servers and on-premise software, CEO Ofir Ehrlich believes that traditional methods have not adapted well to the complexities of today’s cloud-based environments. Nowadays, even small companies may store hundreds of terabytes of data on cloud platforms, with overall data in a large network reaching into petabytes. The assets needing backup are not just active applications but also cold storage, network devices, and more.
The increasing complexity of IT infrastructure, projected to cost companies $838 billion annually by 2034, combined with heightened cybersecurity threats, means businesses are allocating significant resources to backup solutions—sometimes 10% to 30% of their infrastructure budgets. According to Ehrlich, this is driven by internal and external compliance needs.
Despite the growing demand for effective cloud backup, implementing robust solutions remains a challenge. Ehrlich, along with co-founders Gonen Stein and Ron Kimchi, previously created CloudEndure, a disaster recovery startup that Amazon acquired in 2019 to bolster AWS. However, their work at AWS revealed gaps in existing backup systems, particularly when a major AWS customer fell victim to a ransomware attack. The AWS recovery solution only protected top-level data, and over time, changes in the customer's infrastructure led to vulnerabilities.
Eon has not shared specific details about how it addresses these challenges but claims to use a novel approach that efficiently oversees cloud infrastructure without needing to constantly rewrite data. Ehrlich mentioned that Eon has filed several patents on its method.
Shaun Maguire, a partner at Sequoia Capital, praised Eon’s solution in a statement, highlighting how it drastically reduces file recovery times and positions the company as a leader in next-generation cloud backup management.
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