Vates, a French developer of open-source virtualization software, has secured €30 million in funding. The investment was led by the IRIS Growth fund and Bpifrance’s Large Venture fund. The company, founded in 2012, remains majority-owned by its co-founders Olivier Lambert, Nithida Vialle, and Julien Fontanet.
The company’s core products include the XCP-ng hypervisor and the Xen Orchestra management console. Vates reported revenue of €4 million in 2024 and claims to serve over 1,000 customers across approximately 100 countries. The firm has been self-funded and profitable since 2016, with 90% of its revenue generated outside of France.
The new capital is earmarked for three primary objectives: developing the next generation of its platform to support AI workloads and large-scale virtualization, expanding sales and marketing efforts in North America and Europe, and strengthening its network of partners and integrators to facilitate enterprise migrations.
Vates aims to capture market share from VMware following its acquisition by Broadcom. The company recently appeared in the Gartner Magic Quadrant for Server Virtualization Platforms. It faces competition from established players such as Nutanix, Microsoft, and Red Hat, which also feature in the same Gartner report.
