Cloudflare Bundle
Who Owns Cloudflare Company?
Understanding a company's ownership is key to grasping its strategy and accountability. Cloudflare, a web infrastructure and security leader, transformed its ownership with its IPO on September 13, 2019, on the NYSE under 'NET.' Founded in July 2009 by Matthew Prince, Michelle Zatlyn, and Lee Holloway, the company aims to create a more secure internet.
As of August 1, 2025, Cloudflare's market cap reached approximately $71.98 billion. A significant portion, about 19.3% of all websites, uses Cloudflare's web security services as of January 2025. The company's Cloudflare BCG Matrix analysis would reflect its market position.
Who Founded Cloudflare?
Cloudflare was established in July 2009 by Matthew Prince, Michelle Zatlyn, and Lee Holloway, initially operating from Palo Alto, California. The company secured its first round of funding in November 2009, raising $2.1 million. This early capital infusion was instrumental in launching operations and developing the company's foundational products.
Founding Team
Cloudflare was founded by Matthew Prince, Michelle Zatlyn, and Lee Holloway in July 2009.
Initial Funding
The company raised $2.1 million in its Series A funding round in November 2009.
Early Investors
Pelion Venture Partners and Venrock led the initial funding round.
Dual-Class Share Structure
A dual-class share structure was implemented at the time of the IPO.
Voting Rights
Early insider shares have 10 times the voting rights of public shares.
Founder Control
This structure ensures founders Matthew Prince and Michelle Zatlyn maintain significant influence.
The dual-class share structure, established prior to its Initial Public Offering (IPO), granted shares held by insiders and early investors ten times the voting power of those sold to the public. This strategic decision was made to ensure that the founding team, specifically Matthew Prince and Michelle Zatlyn, could retain substantial control over the company's strategic direction and key decisions, even if their economic ownership percentage was not a majority after the IPO. This arrangement underscores the founders' commitment to guiding the company's long-term vision.
Founders and Early Ownership Dynamics
The initial ownership structure of Cloudflare was designed to empower its founders and early backers, ensuring continued strategic oversight.
- Cloudflare was founded in July 2009 by Matthew Prince, Michelle Zatlyn, and Lee Holloway.
- The company secured its first funding of $2.1 million in November 2009.
- Early investors included Pelion Venture Partners and Venrock.
- A dual-class share structure was implemented, giving early investors and insiders greater voting power.
- This structure aimed to maintain founder control over strategic decisions post-IPO.
- Understanding these early dynamics is key to grasping Cloudflare company ownership.
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How Has Cloudflare’s Ownership Changed Over Time?
Cloudflare's ownership journey significantly shifted with its public debut. The company completed its IPO on September 13, 2019, listing on the NYSE under the ticker symbol 'NET.' This move transitioned its ownership from private investors to a broader public market, impacting who holds stakes in the company.
| Investor Type | Approximate Ownership (Late 2024/Early 2025) | Key Holders |
|---|---|---|
| Institutional Investors | 77% - 78% | Capital World Investors, Vanguard Group Inc., Baillie Gifford & Co., Morgan Stanley, BlackRock, Inc. |
| Company Insiders (Founders, Executives) | 1% - 15.70% | |
| Retail Investors | 10.32% - 17.06% | |
| Top 7 Shareholders | 50% - 51% |
Before its public offering, Cloudflare secured over $330 million in private funding across seven rounds. The largest pre-IPO investment was a $150 million Series E in March 2019, led by Franklin Templeton Investments. Other significant early backers included New Enterprise Associates, Union Square Ventures, and CapitalG. Since its IPO, institutional investors have become the dominant force in Cloudflare's ownership structure, collectively holding between 77% and 78% of the company's shares as of late 2024 and early 2025. This substantial institutional presence means their trading activities can heavily influence the company's stock performance.
Key Shareholders and Influence
Institutional investors are the primary owners of Cloudflare, wielding significant influence. Their collective holdings shape the company's direction and governance.
- Capital Research and Management Company was the largest shareholder as of October 2024, holding 9.9% of outstanding shares.
- Baillie Gifford & Co. held the second-largest stake at 9.6%.
- The Vanguard Group, Inc. followed with 8.7% of the company's stock.
- The concentration of ownership among the top shareholders underscores their impact on Cloudflare's strategic decisions and overall Growth Strategy of Cloudflare.
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Who Sits on Cloudflare’s Board?
Cloudflare's governance structure is significantly shaped by its dual-class share system, which places substantial voting power in the hands of its founders and early investors. This arrangement ensures that key decision-making remains concentrated, influencing the direction of the company.
| Share Class | Votes Per Share | Primary Holders |
|---|---|---|
| Class A Common Stock | 1 | Publicly Traded Shareholders |
| Class B Common Stock | 10 | Founders, Early Investors, Insiders |
The dual-class share structure at Cloudflare means that while Class A shareholders have one vote per share, Class B shareholders, primarily founders and early investors, hold 10 votes per share. This disparity is crucial for understanding who controls Cloudflare's decisions. As of March 2021, Class B shares represented 82.05% of the equity but commanded 97.86% of the voting power. Matthew Prince, co-founder and CEO, and Michelle Zatlyn, co-founder and President, are central figures in this structure, with Prince also serving as Co-Chairman of the Board. This concentration of voting power allows insiders to maintain significant influence over corporate matters, including potential acquisitions, even if a majority of economic shareholders might favor a different outcome. The board itself is structured with staggered three-year terms, and directors can only be removed for cause, further reinforcing the control held by the company's leadership. This structure is a key aspect of Cloudflare company ownership and governance.
Understanding Cloudflare's Voting Power
Cloudflare's voting power is heavily concentrated due to its dual-class share structure. This system is designed to protect the long-term vision of the company's founders.
- Class B shares have 10 votes per share, while Class A shares have 1 vote per share.
- Founders and early investors hold the majority of Class B shares.
- This structure allows insiders to retain significant control over corporate decisions.
- Understanding this is key to grasping Cloudflare stock ownership dynamics.
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What Recent Changes Have Shaped Cloudflare’s Ownership Landscape?
Recent developments show Cloudflare's continued expansion and strategic acquisitions, influencing its ownership trends. As of July 31, 2025, the company reported strong Q2 fiscal 2025 results, with revenue up 28% year-over-year to $512.3 million. This growth, coupled with strategic moves like the April 2025 acquisition of Outerbase, indicates a dynamic company profile with a significant institutional investor base.
| Metric | Value (as of Q2 2025) | Year-over-Year Change |
|---|---|---|
| Total Revenue | $512.3 million | 28% |
| Adjusted EPS | $0.21 | Exceeded estimate |
| Paying Customers | 265,929 | 27% |
| Large Customers ($100k+ annual spend) | 3,712 | 22% |
| Dollar-Based Net Retention Rate | 114% | Up from 112% (Q2 2024) |
| Cash Reserves | $3.96 billion | Growing |
Cloudflare's financial performance in the past year has been robust, with 2024 annual revenue reaching $1.669 billion and a projected revenue of $2.113 billion to $2.115 billion for fiscal year 2025. The company's customer base has seen a 27% year-over-year increase, reaching 265,929 paying customers by June 2025. A key indicator of customer loyalty and growth is the dollar-based net retention rate, which rose to 114% in Q2 2025. The company's strategic acquisitions, including Outerbase in April 2025 and a total of 5 acquisitions in 2024, primarily in Cybersecurity and Cloud Infrastructure, demonstrate its commitment to expanding its capabilities. These strategic moves are supported by substantial cash reserves of $3.96 billion as of June 30, 2025, positioning the company for further investment, particularly in AI initiatives. The ownership trend shows a continued high level of institutional ownership, around 78% as of May 2025, reflecting its status as a mature public company.
Institutional Investor Dominance
Institutional investors hold approximately 78% of Cloudflare's shares as of May 2025. This significant stake underscores the company's appeal to large investment firms and funds.
Customer Growth and Retention
Cloudflare's customer base expanded by 27% year-over-year to over 265,000 paying customers by mid-2025. The dollar-based net retention rate of 114% in Q2 2025 highlights strong customer satisfaction and increased spending.
Strategic Acquisitions and Expansion
The company made strategic acquisitions, including Outerbase in April 2025, to enhance its developer experience and full-stack capabilities. This follows 5 acquisitions in 2024, primarily in cybersecurity and cloud infrastructure.
Financial Strength and Future Outlook
With $3.96 billion in cash reserves as of June 30, 2025, Cloudflare is well-positioned for future investments, especially in AI. Projected 2025 revenue is between $2.113 billion and $2.115 billion.
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