Vates, a France-based developer of open-source virtualization software, has raised €30 million in its first funding round, co-led by IRIS through its Growth fund and Bpifrance through its Large Venture fund.
The Grenoble-headquartered company announced the financing on October 6, 2026, following a decade of self-funded operations.
Founded in 2012 by Olivier Lambert, Julien Fontanet and Nithida Vialle, Vates develops open-source software for enterprise virtualization and infrastructure management. Its core products include XCP-ng, a virtualization platform based on the Xen hypervisor, and Xen Orchestra, a platform for managing, monitoring and backing up virtual machines.
Led by CEO and co-founder Olivier Lambert, Vates provides infrastructure software and associated support services to businesses seeking greater control over their virtualization environments.
According to the company, Vates serves more than 1,000 customers across approximately 100 countries. It reported revenue growth exceeding 65% in 2025, with 90% of its revenue generated outside France. North America accounts for nearly half of its business.
Vates has been profitable since 2016 and made its first appearance in the Gartner Magic Quadrant for Server Virtualization Platforms in 2026.
The company plans to use the new capital to accelerate development of its virtualization platform, with investments in performance, storage, security, automation and large-scale infrastructure management.
The funding will also support expansion across North America and key European markets, alongside the development of its international network of distributors, systems integrators and technology partners.
Vates said its co-founders will retain majority ownership following the investment. The company also intends to maintain the existing open-source licensing and development model for XCP-ng and Xen Orchestra.
