By Amit Chowdhry
Publication Date: 2026-10-07 19:55:00
Vates has raised €30 million, approximately $33.6 million, in funding led by IRIS’s Growth fund and Bpifrance through its Large Venture fund, giving the open-source virtualization company new capital to accelerate technology development, expand its enterprise go-to-market organization and scale internationally.
The financing marks Vates’ first major outside funding after nearly a decade of self-funded growth.
Vates develops XCP-ng, an open-source virtualization platform, and the Vates Virtualization Management Stack, or Vates VMS. The company now serves more than 1,000 customers across approximately 100 countries.
North America already accounts for close to 50% of Vates’ business, with customers including Harman, AMD and North Carolina State University.
About 90% of the company’s revenue is generated outside France.
Vates grew more than 65% in 2025 and was recently included for the first time in the Gartner Magic Quadrant for Server Virtualization Platforms.
The company said the new financing is therefore intended to accelerate an established North American business rather than fund an initial entry into the market.
Vates plans to invest significantly in the next generation of its virtualization platform, particularly across performance, storage, security, automation and management of large-scale virtualization environments.
Those investments will also address changing infrastructure requirements associated with artificial intelligence and other…
