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- Arrcus
Arrcus Valuation, Funding & Investors
Arrcus is valued at $400M as of February 2023.
Last Arrcus valuation
$400M
Series D · Feb 2023
Last Arrcus funding round
$30M
Undisclosed stage · Jul 2024
Cumulative funding Arrcus raised
$168M
across 6 funding rounds
Key investors in Arrcus
General Catalyst
Clear Ventures
Lightspeed Venture Partners
Liberty Global
Prosperity7 Ventures
Hitachi Ventures
About Arrcus
Arrcus is a networking software company delivering ArcOS for data center fabrics, edge routing, and 5G infrastructure. Its platform unifies management across white-box hardware from Broadcom and Nvidia, supporting EVPN and BGP protocols for hyperscale operators. Founded in 2016 and headquartered in San Jose, California, Arrcus partners with hardware vendors for deployments handling terabits per second in cloud and telco networks.
Founded
2016
HQ
Website
Status
Privately held
Customer focus
B2B
Revenue model
Product sales
Valuation
$400M (Feb 2023)
Arrcus Valuation
Arrcus is currently valued at $400M, based on its Series D in February 2023.
The $50M round was led by Prosperity7 Ventures, with participation from General Catalyst, Clear Ventures, Liberty Global, Lightspeed Venture Partners and Silicon Valley Bank.
Arrcus' valuation has grown 2.0x from $200M at its Series C in May 2021 to $400M in February 2023, across 2 priced rounds.
Arrcus valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Feb 2023 | Series D | $400M |
| May 2021 | Series C | $200M |
Arrcus Funding History
Arrcus has raised a total of $168M across 6 funding rounds.
Arrcus' first fundraising round was a $15M Series A in July 2018. The most recent completed round was a $30M undisclosed-stage round in July 2024.
Arrcus funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jul 2024 | Undisclosed stage | NVIDIA; General Catalyst; Prosperity7 Ventures; Clear Ventures; Liberty Global; Hitachi Ventures; Lightspeed Venture Partners | $30M | - | Arrcus is a hyperscale networking software company founded in 2016 and based in San Jose, California, specializing in core, edge, and multi-cloud routing and switching infrastructure. The company's primary product is the ACE platform, an advanced networking solution that includes ACE-AI for distributed AI workloads, leveraging its proprietary ArcOS and integration with Nvidia's BlueField Networking Platform. The company serves Fortune 500 and Global 2000 customers in data center, 5G carrier routing, and multi-cloud environments. On July 18, 2024, Arrcus raised $30 million in its Series E funding round led by Prosperity7 Ventures, with participation from NVIDIA (contributing $15 million), Lightspeed Venture Partners, Hitachi Ventures, Liberty Global, Clear Ventures, and General Catalyst. The company has raised a total of at least $204.94 million across multiple rounds to date. The funding was designated for expanding platform support, accelerating growth, and continuing development of cost-effective networking solutions. Arrcus demonstrated strong business momentum heading into 2024, maintaining 100% compound annual growth rate (CAGR) in the preceding period. The company achieved a $400 million valuation in February 2023 during its Series D round, which represented nearly a doubling from the prior valuation. Strategic partnerships include Amazon Web Services, Equinix, Edgecore Networks, and CoreSite, among others. Nvidia's investment carried strategic significance beyond capital, reflecting collaboration on integrating Arrcus networking software with Nvidia's AI infrastructure and platforms. The company's CEO indicated aspirations to become IPO-ready by 2026 or 2027 and to compete with incumbent networking providers like Cisco, Juniper, and Arista. |
| Jul 2023 | Series D | Hitachi Ventures (lead); General Catalyst; Prosperity7 Ventures; Clear Ventures; Liberty Global; Lightspeed Venture Partners | $15M | - | Arrcus is a hyperscale networking software company providing hardware-agnostic solutions for core, 5G/edge, and multi-cloud routing and switching. On July 10, 2023, it announced a significant new investment from Hitachi Ventures as an additional closing of its Series D round, led by Hitachi Ventures, with participation from existing investors including Prosperity7 Ventures, Lightspeed, Liberty Global, Clear Ventures, and General Catalyst. This $15 million infusion aims to accelerate growth, expand market reach, and deliver cost-effective networking solutions. The investment highlights growing interest from strategic and corporate venture groups in Arrcus's technology, which supports multicloud networking, data access, and low-latency needs for AI and emerging technologies. Hitachi Ventures partner Gayathri Radhakrishnan noted Arrcus's fit with digital transformation trends and its competitive software-defined architecture against incumbents like Cisco, Juniper, and Arista. Arrcus CEO Shekar Ayyar emphasized the partnership's role in strengthening its position in software-driven networking. Subsequent investments include a $30 million round in July 2024 from Prosperity7 Ventures, NVIDIA, Lightspeed, Hitachi Ventures, Liberty Global, Clear Ventures, and General Catalyst to expand platform support and growth, building on prior funding totaling $138 million before that round. |
| Feb 2023 | Series D | Prosperity7 Ventures (lead); General Catalyst; Clear Ventures; Liberty Global; Lightspeed Venture Partners; Silicon Valley Bank | $50M | $400M | Arrcus is a hyperscale networking software company specializing in core, edge, and multi-cloud network infrastructure. The company's ACE platform serves three primary markets: data center switching, 5G carrier routing, and multi-cloud networking. Arrcus competes against long-standing incumbents like Cisco, Juniper, and Arista by offering a hardware-agnostic ArcOS network operating system that decouples hardware from software, enabling cost-effective deployment. In February 2023, Arrcus closed a Series D funding round raising $50 million, led by Prosperity7 Ventures with participation from existing investors Clear Ventures, General Catalyst, Liberty Global, and Lightspeed Venture Partners, as well as credit facilities from Silicon Valley Bank. According to CEO Shekar Ayyar, the company's valuation nearly doubled with this round, reflecting strong business momentum. Arrcus was achieving 100% compound annual growth rate during the period leading into 2023, with traction among leading Fortune 500 and Global 2000 customers. The new capital was allocated to expand the company's global go-to-market presence and strengthen engineering and R&D talent, with specific plans to accelerate growth in India and expand regionally into Japan and other emerging markets. By July 2023, the company had raised an additional $15 million in supplemental Series D funding, bringing total Series D commitments to $65 million. |
| May 2021 | Series C | General Catalyst; Samsung NEXT; SoftBank Group; Clear Ventures; Liberty Global; Lightspeed Venture Partners | $28M | $200M | Arrcus is a hyperscale networking software company offering the ArcOS platform, which provides a software-based alternative to traditional costly network router equipment, targeting 5G, data center, multi-cloud, and edge networking markets. The company positions itself as a cost-effective solution, enabling 30-40% cost reductions over legacy equipment by running on generic routers from smaller providers, addressing rigidity and high pricing in a market dominated by a few incumbents. On May 21, 2021, Arrcus raised $28 million (some sources cite $28.4 million) in a Series C round from investors including Clear Ventures, General Catalyst, Liberty Global, Lightspeed Venture Partners, Samsung NEXT, and SoftBank, bringing total funding at that time to around $73-126 million across prior Series A ($15M in 2018) and Series B ($30M in 2019). A later February 2023 round valued the company at $400M, double the $200M valuation from the 2021 Series C per TechCrunch reporting. Around the 2021 timeframe, Arrcus demonstrated strong growth momentum, announcing accelerating demand for its Arrcus Connected Edge (ACE) platform, tripling year-over-year bookings from 2020 to 2021, and appointing new executives including Shekar Ayyar as CEO to lead expansion. The company continued rapid scaling, with subsequent rounds including $50M in February 2023 led by Prosperity7 Ventures at $400M valuation and later Series E funding up to $67M in 2025, pushing total raised beyond $270M. TechCrunch noted 100% revenue growth in the year prior to 2023. Arrcus competed in networking against players like IoTium and ZeroTier, focusing on software-driven innovation amid multi-cloud and 5G demands. |
| Jul 2019 | Series B | Lightspeed Venture Partners (lead); General Catalyst; Clear Ventures | $30M | - | Arrcus, founded in 2016 by Broadcom and Cisco veterans Devesh Garg, Keyur Patel, and Derek Yeung, develops software-driven networking solutions including the ArcOS platform for high-density 100G/400G Jericho2-based routing in hyperscale cloud, edge, and 5G networks. The company emphasizes a vendor-agnostic, flexible consumption model with low total cost of ownership to disrupt proprietary networking systems. On July 23, 2019, Arrcus announced a $30 million oversubscribed Series B funding round led by Lightspeed Venture Partners, with participation from existing investors General Catalyst and Clear Ventures, bringing total capital raised to $49 million. The funds were allocated to accelerate customer growth, expand operations, support production ramp-up of ArcOS, scale strategic partnerships, and strengthen infrastructure expertise. Arrcus positions itself as a leader in routing-centric network transformation, backed by a team with experience shipping over 630 production products and holding 190+ patents. CEO Devesh Garg highlighted the shift toward open, choice-driven networking away from vertically integrated systems. |
| Jul 2018 | Series A | General Catalyst (lead); Clear Ventures | $15M | - | Arrcus emerged from stealth in 2018 with $15 million in Series A funding from investors including General Catalyst and Clear Ventures. This round matches the specified investors and approximate date of July 16, 2018, with General Catalyst as a lead investor. Arrcus provides software-driven networking solutions, including its ArcOS network operating system for routing and switching in data centers, service providers, and other environments. Subsequent rounds included a $30 million Series B in July 2019 led by Lightspeed Venture Partners, bringing total funding to $49 million with participation from General Catalyst and Clear Ventures. |
Who has invested in Arrcus?
10 investors have backed Arrcus across its funding rounds, including General Catalyst, Clear Ventures, Lightspeed Venture Partners, Liberty Global, Prosperity7 Ventures and Hitachi Ventures.
Lead investors include Hitachi Ventures, Prosperity7 Ventures, Lightspeed Venture Partners and General Catalyst.
Arrcus Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 6 | Lead | Jul 2018 | ||
| 6 | Participant | Jul 2018 | ||
| 5 | Lead | Jul 2019 | ||
| 4 | Participant | May 2021 | ||
| 3 | Lead | Feb 2023 | ||
| 2 | Lead | Jul 2023 | ||
| 1 | Participant | Jul 2024 | ||
| 1 | Participant | May 2021 | ||
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialArrcus Competitors
Arrcus competitors include listed companies like Rapac, Dongwon Systems, Ericsson Nikola Tesla and Comba Telecom, and private ones like Helium and Celona.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $262M | $11M | $366M | - | ||
| Publicly listed | $999M | $125M | $456M | 0.7x | ||
| Publicly listed | $275M | $30M | $324M | 0.9x | ||
| Publicly listed | $582M | $57M | $279M | - | ||
| Private | - | - | $1.2B | - | ||
| Private | - | - | $109M | - |
Arrcus Public Comps
Arrcus is still privately-owned, but its public comps include Avantel, Clearfield, EVS Broadcast Equipment, Rapac, Dongwon Systems, Saudi Cable, Thaicom, Ericsson Nikola Tesla, Methode Electronics and Kinx.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $23M | $5M | 17.6x | - | 82.3x | - | |||
| $150M | $15M | 2.2x | 2.1x | 22.0x | 29.7x | |||
| $240M | $66M | 1.6x | 1.4x | 5.7x | 5.6x | |||
| $262M | $11M | 2.1x | - | 51.7x | - | |||
| $999M | $125M | 0.7x | 0.7x | 5.3x | 5.3x | |||
| $42M | - | 8.6x | - | - | - | |||
| $74M | $21M | 4.6x | 4.8x | 16.4x | 11.6x | |||
| $275M | $30M | 1.0x | 0.9x | 9.2x | 9.1x | |||
This data is available for Pro users. Sign up to see all Arrcus competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Arrcus
| When was Arrcus founded? | Arrcus was founded in 2016. |
| Where is Arrcus headquartered? | Arrcus is headquartered in San Jose, CA, United States. |
| Is Arrcus publicly listed? | No, Arrcus is a private, VC-backed company. |
| What is Arrcus' valuation? | Arrcus was last valued at $400M in its Series D in February 2023. |
| How much funding has Arrcus raised? | Arrcus has raised $168M across 6 funding rounds. |
| What was Arrcus' last funding round? | Arrcus' last funding round was a $30M undisclosed-stage round in July 2024. |
| Who are Arrcus' investors? | Arrcus' investors include General Catalyst, Clear Ventures, Lightspeed Venture Partners, Liberty Global, Prosperity7 Ventures, Hitachi Ventures, NVIDIA, Samsung NEXT, SoftBank Group and Silicon Valley Bank. |
| Which companies are comparable to Arrcus? | Companies comparable to Arrcus include Rapac, Dongwon Systems, Ericsson Nikola Tesla, Comba Telecom, Helium and Celona. |
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