NetBox Labs Secures $35 Million to Modernize Network Infrastructure Amid AI Surge

NetBox Labs just closed a $35 million Series B funding round. The company makes software that helps organizations manage their network infrastructure. Think of it as the air traffic control system for the internet's plumbing.

The funding round was led by NGP Capital, with help from Sorenson Capital and Headline. Previous investors also joined in, including Flybridge Capital, Notable Capital, Mango Capital, Salesforce Ventures, Two Sigma Ventures, and IBM. That's a long list of smart money betting on boring infrastructure software.

NetBox Labs stewards the open-source NetBox platform. Tens of thousands of companies use it, including Fortune 500 firms, cloud providers, AI startups, and government agencies. The software has become the standard way modern companies build and manage their technology infrastructure.

The AI Connection

CEO Kris Beevers says there's a race happening. Companies are expanding and modernizing their infrastructure to keep digital systems fast, secure, and manageable. AI is making this rush even more intense.

"NetBox is now a ubiquitous platform at the heart of a composable network and infrastructure management stack, with adoption soaring even more as AI drives massive demand for infrastructure," Beevers said.

The timing makes sense. AI requires massive computing power. That means more data centers, more servers, more network equipment. All of that needs to be managed, monitored, and maintained. NetBox helps companies do that without losing their minds.

What NetBox Actually Does

NetBox started as an open-source project. It helps network teams keep track of their equipment, connections, and configurations. Before NetBox, many companies used spreadsheets or homegrown systems that broke constantly.

The platform has grown into a full suite of tools. NetBox Discovery finds network devices automatically. NetBox Assurance catches problems when infrastructure drifts from its intended setup. NetBox Operator uses AI to help network teams solve problems faster.

CoreWeave, which builds AI data centers, uses NetBox Cloud to manage its expanding infrastructure. "We're building dozens of new AI data centers every year, full of complex infrastructure," said Jim Julson, CoreWeave's head of network.

The Business Case

Julson makes a compelling argument for why companies pay for this software. "Deploying our infrastructure even a month sooner as a result of these efficiencies directly impacts our revenue," he said.

That's the real story here. Network management sounds boring, but it's critical. When companies can deploy infrastructure faster, they make money sooner. When systems break, they lose money. NetBox helps with both problems.

NetBox Labs raised $20 million in Series A funding in 2023. The company has quadrupled its team in two years. They're hiring across customer success, engineering, marketing, product, partnerships, and sales.

The Open Source Angle

NetBox started as an open-source project, and it remains one. This creates an interesting dynamic. Companies can use the basic version for free, but they pay for additional features and support.

This model has worked well for other infrastructure companies. MongoDB, GitLab, and Elastic all built successful businesses on open-source foundations. NetBox Labs appears to be following a similar path.

The open-source community provides feedback, bug reports, and feature requests. It also helps spread adoption. Network engineers who use NetBox at one company often introduce it at their next job.

Market Timing

NGP Capital partner Upal Basu sees NetBox Labs as perfectly positioned. "Their impressive commercial growth validates our belief that they can become the de facto platform for network operations, observability, automation, and security," he said.

The market timing looks right. Companies are dealing with increasingly complex networks. Cloud computing, remote work, and AI are all making network management harder. Legacy tools aren't keeping up.

NetBox Labs isn't the only company in this space. But they have advantages. The open-source foundation provides credibility and adoption. The AI boom is creating urgency. The team has proven they can execute.

Customer Base

NetBox Labs serves a diverse customer base. ARM, Cisco, Constant Contact, CoreWeave, J.P. Morgan, Kaiser Permanente, and Riot Games all use their software. That's a mix of tech companies, financial services, healthcare, and gaming.

The variety suggests the platform works across industries. Network management is a universal problem. Every company with servers, routers, and switches needs to keep track of them.

The customer list also includes "hyperscalers" - companies that operate massive cloud infrastructure. These are some of the most demanding network environments in the world. If NetBox works for them, it probably works for everyone else.

Growth Plans

NetBox Labs plans to use the new funding to continue innovating and scale globally. They're hiring across all departments. The company has a globally distributed team dedicated to what they call "a culture of action and innovation."

The phrase "culture of action and innovation" is corporate speak, but the results suggest they mean it. The team has grown from a small startup to a company serving Fortune 500 customers in just a few years.

They're also investing in the community. NetBox Labs fosters a vibrant community of tens of thousands of network and infrastructure professionals. This community drives adoption and provides feedback for new features.

Competition and Positioning

The network management space has plenty of established players. Companies like Cisco, SolarWinds, and ManageEngine all offer competing products. But NetBox Labs has carved out a unique position.

Their open-source foundation sets them apart. Traditional vendors sell proprietary software with high license fees. NetBox lets companies start for free and pay as they grow.

The timing also helps. Legacy tools were built for simpler networks. Modern infrastructure is more complex, distributed, and dynamic. NetBox was designed for this new reality.

Why this matters:

• NetBox Labs sits at the intersection of three major trends: open-source adoption, AI infrastructure demand, and the need for modern network management tools - a position that could make them the standard for how companies manage their digital infrastructure.

• The funding validates that boring infrastructure software can build big businesses when it solves real problems - and every company struggling with network complexity is a potential customer.