Industrifonden invests in Vesiro in a €1.6M seedround to cut server costs and energy use through a performance-enhancing Elasticsearch plugin

Gothenburg-based Vesiro, a Chalmers University spinout, has raised €1.6M in a seed round. The funding will be used to scale its Elasticsearch plug-in, which reduces server costs and energy consumption in large-scale data analysis. The round was led by Chalmers Ventures, with Industrifonden as co-lead, alongside Staffan Truvé and a group of new and existing angel investors.

The rapid growth of global data creation is putting increasing pressure on servers and data centers. Server halls are major energy consumers, and their footprint is growing. In 2021, server halls accounted for roughly one percent of global energy use, a figure expected to rise to ten percent by 2030.

Vesiro, a Chalmers University spinout, develops a performance-enhancing plug-in for Elasticsearch. The software helps companies with large Elasticsearch clusters reduce server costs by increasing the search performance in their existing Elasticsearch instances. Internal benchmarks and pilot customer tests show that Vesiro’s software enables up to three times faster search, which can enable customers to reduce the number of required servers by up to 50 percent. 

“Data volumes are growing faster than today’s infrastructure can handle, and our technology makes it possible to analyze large datasets using far fewer servers. This lowers costs while also reducing energy consumption,” says Oskar Hagman, co-founder and CEO of Vesiro.

The solution is particularly relevant for companies with high server costs connected to their use of Elasticsearch, for example, in industries like business intelligence, e-commerce and AI. By delivering up to twice the search performance of standard Elasticsearch deployments, the plugin enables organizations to achieve the same results with significantly fewer servers, unlocking substantial cost and energy savings without replacing their current systems.

“Our focus is to make it easy for customers to get value from our technology. With our current solution, companies can achieve significant performance gains and cost savings while keeping their existing systems in place,” says Oscar Widén, co-founder and COO of Vesiro.

The company was founded by Hagman and Widén, both alumni of Chalmers’ entrepreneurship program, together with Örjan Vestgöte, a well-known Swedish innovator and the inventor behind the core algorithm.

Vesiro has now raised €1.6M in a seed funding round with participation from Chalmers Ventures, Industrifonden, Länsförsäkringar Göteborg & Bohuslän, Yuncture, First Gate Invest, E14 Invest, Mach One, and angel investors Stefan Mahlstein, Staffan Truvé, Jan Sparud, Petter Eriksson and Magnus Lundgren. The funding will be used primarily to expand the technical team and accelerate product development and market rollout.

“Vesiro has developed an innovative search algorithm that unlocks value for a broad set of customers struggling with the rapid growth of unstructured data. The solution shows strong potential as a highly scalable and easy-to-integrate addition to existing systems, and we are glad to welcome Vesiro to Industrifonden’s portfolio,” says Tobias Elmquist, Senior Investment Director at Industrifonden.