Verda (Finland) raises $189M in Series B

(verda.com)

78 points | by cmrdporcupine 6 hours ago ago

32 comments

  • herodoturtle 3 hours ago

    Sincere congrats to the Verda team :-)

    Can someone please help me understand what their competitive advantage is, versus the likes of AWS / Azure et al, who are also available in the EU.

    I love a good underdog story, but I'm not understanding the economics of it.

    • traceroute66 an hour ago

      > AWS / Azure et al, who are also available in the EU

      Because US-in-EU is fake-EU.

      CLOUD act, PATRIOT act etc. etc. US headquarters doesn't escape the arm of US law.

      Remember a long time ago there was a famous case where Microsoft fought the US DoJ when they came looking for somebody's data in Azure Ireland ?

      That was then. Now is now. Do you honestly think Microsoft would put up the same fight today, especially if the US President decided to lean on them ? I don't !

      CLOUD/PATRIOT etc. has gone from a theoretical risk to a real one. And now you have a US President in office who doesn't care much for bypassing all that anyway.

      • graemep an hour ago

        Is it a risk anyone cares about? There is very little actual switching. In many ways dependence is increasing as everything moves to apps (including the EU's own age verification app) that only run on US controlled devices.

        • luplex 31 minutes ago

          I work in a European government institution. This is definitely a risk we care about, and we would switch to sovereign clouds in a heartbeat if we had any good ones in Europe.

          • traceroute66 2 minutes ago

            > if we had any good ones in Europe

            TBF (and the subject of government tech and procurement aside) there are good ones in Europe.

            The problem tends to be how much of the US-cloud cool-aid your organisation has drunk.

            If you've drunk the whole bottle, i.e. the random alphabet-soup of interdependent microservices, then sure you'll have a tough time finding a like-for-like equivalent.

            But if you've still got old-school IT brains in your IT team, then its perfectly feasible to find equivalence in Europe.

            Not only that, but you'll probably pay at least 10x less in Europe because you're not paying through the nose for the alphabet-soup of random interdependency.

            Also the EU providers price sheets are clear and it is easy to reliably forecast how much you will be paying. As opposed to the US provider's muddy price sheets full of small-print and all sorts of random invented proprietary billing units that are nigh on impossible to reason about.

          • graemep 2 minutes ago

            Are you also going to switch your end user devices, or are you going to remain reliant on Google, Apple and Microsoft? The data flows through those.

            Do other institutions care? Some people and some institutions do, but how many?

            What about the private sector? Even if you moved all government services entirely away from the US, your economy can still be reliant on American suppliers and communications between the government and the private sector and individuals will too.

            > we would switch to sovereign clouds in a heartbeat if we had any good ones in Europe.

            What is wrong with the options you have in Europe? That comment suggests to me you do not care enough to do anything that takes effort.

          • koonsolo 13 minutes ago

            > if we had any good ones in Europe

            So you basically confirmed that being located in Europe isn't enough.

    • _ink_ 3 hours ago

      Cloud Act: The CLOUD Act (Clarifying Lawful Overseas Use of Data Act) is a U.S. federal law passed in 2018 that allows U.S. law enforcement to compel U.S.-based tech and cloud companies to hand over customer data, even if that data is stored on servers located outside the United States

      • petcat 2 hours ago

        The data sovereignty stuff is mostly just lip-service. Both the EU and Canada are in the process of negotiating reciprocal CLOUD Act arrangements with the US government similar to what UK and Australia already have in place.

        > EU-US agreement [1]

        > Negotiations with the United States to facilitate cross-border access to e-evidence for judicial cooperation in criminal matters started in September 2019 and are currently ongoing. At present, US-based service providers collaborate with European law enforcement authorities through direct cooperation on a voluntary basis or through mutual legal assistance (MLA) procedures.

        [1] https://www.consilium.europa.eu/en/policies/e-evidence/

        • graemep an hour ago

          Verda's own website is sitting behind Cloudflare! So is consilium.europa.eu! The dependence is pervasive.

    • 13324 3 hours ago

      There are several regulated industries that need to have their computing done in the EU without ties to US companies. Sovereignty is currently a big political topic.

    • koonsolo 3 minutes ago

      It's a bit sad that the only responses you get is "It's based in EU". If that's the only thing, it's not really impressive is it?

      Don't get me wrong, as a European I'm all for EU, but we should offer products and services that are at least as good as abroad competitors. My company still relies heavily on US tech, for the simple fact that lots of it is plain better and/or cheaper.

    • Zigurd an hour ago

      The economics of it are the same as for Hetzner. AWS is trying to split the difference by offering services that are supposedly run exclusively by EU citizens, from data centers located in the EU. The reasoning is pretty solid for at least the next two or three years. It might take another five to restore trust in US tech. Not a bad amount of runway.

    • victorbjorklund 2 hours ago

      They ain’t Americans.

    • bergheim 3 hours ago

      Them putting services in EU (even as subsidiaries) is just a marketing strategy where they are straight up lying to customers so they can get more money.

      See https://en.wikipedia.org/wiki/CLOUD_Act

  • nik736 4 hours ago

    Verda is great! The only thing bad about Verda is that it's sold out fairly often :-) So the $189M will hopefully help with that.

  • ksimukka an hour ago

    If only I was in Helsinki. This would be an interesting time to work in this area.

  • welhoilija 2 hours ago

    Gongratulations to the team! Their solutions not only allow the data to actually stay in the EU, but are otherwise competetive as well!

    • huksley 2 hours ago

      Could you clarify what you mean? Cloud-related data stay in the EU, but yeah, marketing/payment stack are more diverse.

      Disclaimer: I work at Verda.

  • paperboy10000 4 hours ago

    Excellent news for European tech stack - congrats!

  • petcat 4 hours ago

    AI cloud? I guess 189 mil will buy nvidia GPUs to host inference for Chinese models for Europeans? Is that what this is?

    • impossiblefork 3 hours ago

      That's a real risk.

      Hopefully it's for buying VSORA or Euclyd machines, but well...

      • lifty 3 hours ago

        Can you buy these already? I think not.

        • impossiblefork 3 hours ago

          The VSORA machines, possibly. They are apparently delivered and being installed at Scaleway.

          The Euclyd machines, probably many months away.

  • BiraIgnacio 3 hours ago

    This is wonderful, congrats to everyone at Verda!

  • robotswantdata 3 hours ago

    Very good dev experience! Congrats

  • htrp 4 hours ago

    yet another ai cloud

    • dude250711 4 hours ago

      Yeah, but this time like... In EU!

  • mrits 4 hours ago

    $198M for AI Cloud when US has a company that pays one of it's employees about that?

    • kryptiskt 2 hours ago

      That American AI companies waste money like that is a good argument for them being vulnerable to leaner companies.

  • hn45e7pbij 4 hours ago

    Yeah the sold out bit is telling, and it's rarely the cards, it's finding racks with enough power and cooling ready to take them.