Vultr Raises $333M at $3.5B Valuation

(wsj.com)

84 points | by marc__1 4 hours ago ago

67 comments

  • neom 4 hours ago

    When DigitalOcean got it's a16z money: https://x.com/Vultr/status/489139385154420736

    • t3rabytes 4 hours ago

      Right up there with New Relic writing a blog post about how you couldn't trust Sumo Logic (and should move to NR) after they got bought by Francisco Partners, only to be bought by Francisco Partners themselves.

    • infecto 4 hours ago

      Assuming they did this raise because they need the capital to throw more into their GPU business, this is not really a remarkable quote. One of the first things noted in the article is this is soon to be the largest part of their business. This is their first capital injection too. While its fueled by the growth in AI, the business itself is mundane, they rent GPU access. Growing that requires a lot of capital.

    • coolgoose 4 hours ago

      That aged well :P

      • boringg 3 hours ago

        Great socials strategy.

    • moralestapia 2 hours ago

      You held this grudge for 10 years, lmao.

      Joke aside, 300M for 10% of your company in its only ever funding round is a pretty sweet deal. It made its founder a billionaire "overnight".

      He stands at a company with about the same market cap as DO, but private, with full control and very low dilution. I would consider that a win.

      • philsnow an hour ago

        > You held this grudge for 10 years, lmao.

        ~18 years ago I owned a Belkin router that would hijack on the order of 1/10000th of plain http requests and send them to a belkin.com domain to try to get people to buy more Belkin products.

        I have not bought another Belkin product since.

      • neom an hour ago

        ngl I def feel a bit smug getting to pull that one out... They used to tweet and delete mean shit at me all the time, heh. I feel like Joyent has more reason to hate me than Vultr, I never bothered Vultr!!!! :)

        Yeah, jokes aside I think David Aninowsky is a super smart guy, I actually quite like him. Funnily enough, I'd even emailed them a couple years ago to pitch them letting me build this VERY idea for them, never heard back. :)

  • gorbypark 2 hours ago

    I don't remember the exact details, but I used to have a Vultr VPS (I think the smallest they had, for something like $2.50/month) for a few years running OpenBSD. One day I noticed IPV6 had stopped working, so I emailed support after a while because I wasn't sure if I had broken it during an upgrade a few months before or not (I don't ever really specifically use IPV6). Anyways, got a super detailed reply back from support with the exact cause / how to fix it that was specific to OpenBSD. I was pretty surprised they had someone replying to emails from a $2.50/month customer who was actually knowledgeable about a fairly niche OS!

    • pocketarc 2 hours ago

      When people try to cheap out on customer support, this is exactly what they lose, and it's something I always try to bear in mind as I go about things.

      By having someone like that replying to emails, they ended up with someone praising them years down the line in a high-profile place, where it'll be seen by countless engineers.

    • icedchai an hour ago

      I use Vultr for a couple of VPSes. They are great!

    • dzonga 2 hours ago

      and i'm still salty that 2.5 vps is can't be found anymore.

      • belval an hour ago

        Do you mean on vultr or in general? Because $2.5/month VPS are still widely available on lowendbox: https://lowendbox.com/.

        • jorams an hour ago

          They're also still available from Vultr. I just checked the wayback machine and the only thing that seems to have changed since their introduction in ~2017 is that the included SSD was reduced from 20GB to 10GB in early 2019.

  • Gud an hour ago

    I was a happy Vultr customer until the day I tried to get port 25 unblocked. Instead of getting it unblocked I received a ”sorry not sorry” copy paste from some senior sales guy.

    I had spent thousands of dollars on their services running my servers for years.

    Needless to say I immediately dumped them, moved to Hetzner and 1 week later I had my own mail server running(still do).

    • indigodaddy an hour ago

      I tested them out maybe like 7-9 years ago and that's the reason I didn't continue. 25 blocked by default. Just left a bad taste in my mouth. I mean sure they are trying to discourage spammers but just outright blocked by default seemed a bit overboard to me

      • ToDougie 25 minutes ago

        Lesson here is always be transparent about your product. If you're permanently blocking ports by default, put some emphasis on that limitation during the sales process.

        Maybe they did a risk analysis. Maybe they don't have the bandwidth to create a vetting process. Either way, be transparent.

      • rstupek 28 minutes ago

        That’s pretty well standard for VPS providers at this point isn’t it?

  • leetrout 4 hours ago

    "Cloud AI Startup Vultr"

    We really have let this go too far when a mid tier VPS provider is now a "cloud AI startup".

    • mrweasel 4 hours ago

      They're not even a startup, the company is 10 years old.

      The investment does make some sense from AMD perspective though. They need people to be able to access their GPUs, on a rental basis. They can't really throw enough money at AWS, GCP or Azure to make a difference, but Vultr is a trusted VPS provider, where AMD can buy a lot of influence for a realistic amount of money.

      I do find it interesting that Vultr has such a low valuation, compared to other companies we've seen recently. It seems more reasonable, but they also have an actual business plan and have physical property. I don't know if they are profitable, because the media only focus on revenue, which is pointless if you don't put it into context.

      • kijin 3 hours ago

        Digital Ocean has a market cap of $3.49B as of yesterday, so $3.5B for Vultr sounds about right.

        It's a mundane business in a crowded market, providing services they copied from other companies, which in turn anyone can copy. Oh, and they also need to compete with Akamai (Linode) who probably have much deeper pockets.

        • alephnerd 2 hours ago

          > Oh, and they also need to compete with Akamai (Linode) who probably have much deeper pockets.

          As of a couple (2-3 years ago) Akamai had no plans or interest to expand into Cloud. They wanted to remain on-prem/hybrid because of existing synergies and strategies. Their CDN business was also heavily used by companies that have cloud BUs.

          I don't think this strategy has changed.

          • kijin an hour ago

            Yet Akamai hedged their bet by acquiring a well-known VPS company.

            Just because they aren't aggressive about expanding Linode doesn't mean that Linode is not a serious competitor to Vultr. Linode offers nearly everything Vultr does, at a similar price point.

      • nikanj 2 hours ago

        The company is not 10 years old, they loudly declare they've bootstrapped since 1996 https://x.com/Vultr/status/489139385154420736

        • mrweasel 2 hours ago

          That makes more sense to me, because I remember have looked at their offerings earlier as they where one of the only places you could run OpenBSD. So I was a little surprised to see 2014 on their websites, but figured I just remembered wrong.

      • paxys 3 hours ago

        10 years isn't all that long for a company to remain a "startup".

    • alberth 3 hours ago

      In all fairness, Vultr was the first hosting company to offering fractional GPUs - and they gained a lot of traction with indie developers as a result of it.

      Not sure if this was their first GPU offering, but they have been doing it for 2.5+ years (at minimum)

      https://www.businesswire.com/news/home/20220524005336/en/Int...

      • firesteelrain an hour ago

        Azure has had fractional GPUs for a while. I am not sure when it started.

    • kyleblarson 2 hours ago

      Journalists learn a new phrase that sounds techy / flashy and beat it to death. Watch CNBC for 5 minutes and you will see their "experts" use the phrase "hyper scalers" at least 5 times.

    • chipgap98 an hour ago

      Its only an AI startup if it comes from the AI Startup region of California. Otherwise they are a sparkling independent business

    • oefrha 2 hours ago

      Wait until you find out that MinIO, the S3 compatible storage company, is apparently an AI company through and through now. https://min.io/

      > the AI revolution is powered by technologies that are either built on MinIO or integrated with it.

      • bn-l an hour ago

        Yeah I noticed that also. And it also left me wondering how an S3 you can host yourself is “””””””AI””””””.

    • nickdothutton 4 hours ago

      Founded in 2014. Sigh.

      • notwhereyouare 4 hours ago

        tweet reference by another poster makes it seem like they've been around since '96 in some form

        • nickdothutton 3 hours ago

          Upon further digging there is a parent LLC[1] which I presume is the one predating the Vultr entity.

          [1]ClanServers Hosting LLC

          • bauruine 3 hours ago

            They where using the brand Choopa before vultr which was a thing since at least 2001. [0]

            EDIT: News about their brand consolidation [1]

            [0]: https://web.archive.org/web/20010405033628/http://choopa.com...

            [1]: https://www.constant.com/transition-to-vultr/

            • naiv 6 minutes ago

              Good old memories working in the adult industry

            • rmorey 2 hours ago

              You seem to be getting downvoted, but as a former Vultr employee I can confirm this is correct

          • simonw 3 hours ago

            https://www.gameservers.com/corporate/article/27/Clan-Server...

            June 20, 2006: "Clan Servers Announces New Identity and Launch of GameServers.com"

            https://www.linkedin.com/in/david-aninowsky-b1241924/ shows current role as Founder/Executive ChairmanFounder/Executive Chairman, Vultr, but also lists CEO/FounderCEO/Founder GameServers.com Mar 2003 - Feb 2021

            (As someone who played a bunch of TFC, UT, Quake 3 and Counter-Strike back around the turn of the century it's fun to see someone from that world who rode the wave all the way to modern GPU hosting.)

          • wut42 3 hours ago

            it was Choopa before being Vultr. They had other brands. Current holding has renamed to "The Constant Company" or something.

            • nickdothutton 3 hours ago

              All of this just makes me suspicious, perhaps unnecessarily so. I'm old enough to remember ENRON stashing a load of debt in their various "Raptor" LLCs before the final implosion.

    • karmakaze 3 hours ago

      This I don't mind. They offer cloud GPUs, why not call it what buyers want to see?

    • MangoCoffee 3 hours ago

      Masayoshi Son (SoftBank) is investing $100 billion (?) in the US and heavily focusing on AI. Maybe they're trying to grab his attention? /s.

    • nine_zeros 4 hours ago

      The forgot to add "powered by block chain"

  • karmakaze 3 hours ago

    My experience with Vultr has been better than with any of the other smaller VM providers. They always seem to provide just a little extra, and don't always nickle and dime you at every opportunity. I originally chose them because they most consistently had the best VM performance/price measured by a third party.

    The other thing that stands out in that space is that their pricing isn't linear by vCPU and RAM. e.g. larger instances give better ratios and also offer bare-metal servers if you got to a scale and stability where that would be better suited.

    • b-lee 2 hours ago

      I am considering them, but reviews on Trustpilot are less than favorable. I'm not sure whether or not to trust the site.

      https://www.trustpilot.com/review/vultr.com

      • PaywallBuster a minute ago

        i've run 5$ vps for years with them

        mostly works, there's maybe a "restart" once a year due to hardware problems

        all handled transparently without you intervention

        support is responsive enough

        for personal use works perfect

        ---

        from a business account with many servers expecting higher reliability sometimes they don't correspond and have too many maintenance windows with _guaranteed_ downtiem

      • karmakaze 26 minutes ago

        Read the ratings/comments on the first page and it looks like one-off case complaints, though I have nothing to back that up than my experience. I've been using them 6+ years and their systems have just worked as advertised and never needed to contact their support. I've had overdue bills which I've paid maybe a month later and it was never a problem--never got any threats to suspend service or anything.

        Perhaps they act quickly on DMCA reports, so if you're in a gray area don't use them?

        I was just curious what kind of promotions they have and saw this one for $300 in credits and $100 free trial[0].

        [0] https://sites.google.com/site/vultrfreecredit

      • zie 2 hours ago

        I've been happy enough over the last 5+ years, but I'm not a huge user and I've only ever interacted with their support once many years ago, and it was fine.

        No complaints.

  • kyledrake 2 hours ago

    I use Vultr for a BGP anycast CDN (they let you bring your own ips) and they're overall excellent. They also have budget GPU VPSes that are perfect for webgl screenshotting via chrome headless. Their sales rep gave me a 10% discount and we're not even slightly in their high volume category. Extremely underrated VPS provider IMO, I've had better results with them than DO. I hope this development does not change things.

    • icedchai 32 minutes ago

      I searched for a provider that would let me do BGP on a VPS and found Vultr. Their network is solid with tons of peers, low latency, high bandwidth to my location. My brief interaction with their support was very smooth.

  • airstrike 4 hours ago
  • ksec 30 minutes ago

    When they announced Bare Metal I was hoping it was closer to Hetzner, basically old fashion dedicated server.

    AMD EPYC™ 9454P 48 Core / 96 Threads, + 128 GB DDR5 ECC + 3.84 TB NVMe SSD for $221 and a $88 one time set up fee on Hetzner. Even if they could do it at $100 more expensive at $321 would still have been good enough.

    But their Cloud / VPS offering are still very good. Now that Linode is nearly gone. DO is mostly Intel based. Vultr is mostly AMD. The other one that is close if not better is UpCloud.

  • Zambyte 4 hours ago

    WSJ blocked my request to view the page after making me do a captia to see it, and then only the first paragraph is visible on the Wayback Machine. The modern web is a joy to use.

    • 65 3 hours ago

      WSJ is also blocking my request to view the page. Why they need a shitty request blocker for a web article - server side rendering only the first paragraph, I don't know.

    • SoloPolo 2 hours ago

      Works for me using Bypass Paywalls Clean on Firefox (PC): https://github.com/bpc-clone/bypass-paywalls-firefox-clean?t...

      Lots of DMCA requests from news publishers means the binary extension is actually hosted on GitFlic.ru instead of Github or Firefox Addons site.

      • runako 2 hours ago

        > the binary extension is actually hosted on GitFlic.ru

        Going out on a limb to say that nobody should install this.

        • ZYbCRq22HbJ2y7 2 hours ago

          You can inflate the xpi file and read/modify the source.

        • ctoth 2 hours ago

          Incredibly-frustrating. BPC was a true gem.

  • VoidWhisperer an hour ago

    Interesting that this ends up posted on the same day I got this email from them for my VM hosting a vpn:

    "Our monitoring system indicated an issue with the hardware node hosting the instances listed in this email. A sudden reboot has been detected. Our engineering team is currently investigating the issue that caused this, but we expect no impact on data and/or configurations."

  • zcdziura 2 hours ago

    I originally signed up with Vultr because they make it easy to set up an OpenBSD server, and I wanted to experiment with hosting my own mail server on OpenBSD. I've since expanded my usage with them and host everything on Vultr. Very satisfied with their service!

  • impulser_ 3 hours ago

    Are they bigger than DigitalOcean?

    DigitalOcean is also currently valued at 3.5 billion right now, does ~800m ARR, 125m FCF, and profitable.

    Anyone know how Vultr compares to this?

  • mgkimsal 4 hours ago

    I've started testing with vultr some because they offer affordable fractional GPUs. I think I had something running for about $60/month with a 'real' GPU. 1/24th a GPU, IIRC, but... better than nothing. DO and linode offer GPU service, but the minimal cost just to get something up is significantly more.

    • everfrustrated an hour ago

      Fractional as in SR-IOV?

    • alchemist1e9 3 hours ago

      I’ve also use those … shhh don’t tell everyone, they have already been full on many occasions.

      IMO Vultr is best cloud provider and I’ve tried many. I can’t give a single reason but more they seem to get the balance of features correct for me.

  • qoez 3 hours ago

    Real nvidia competition will come from innovating in chips, not this thing which is mostly focused on way higher levels (cloud)

    • nijave 2 hours ago

      Still good to have more competition in the GPU hosting space