Breaking The Boundaries Of Innovation: Stellar Startups You Need To Know In 2024

In our annual Stellar Startups special report, CRN shines a spotlight on some of the most exciting channel-focused startup vendors with leading-edge technologies that are creating new opportunities for solution providers.

The pace of IT industry innovation, always moving at a brisk clip, has accelerated to a full-on sprint over the last two years with the rush to develop products that incorporate AI. And startup companies are leading the charge, either developing new tools and platforms that push the boundaries of AI technology itself or incorporating AI capabilities into a new generation of IT systems and applications.

That’s why it’s even more imperative today that solution providers, MSPs and strategic service providers be aware of startups with breakthrough technologies that they can use to provide leading-edge solutions and services to their customers and gain a competitive advantage.

Here we present the CRN 2024 Stellar Startups list. This year’s roundup includes more than 80 startups founded in 2018 or later with annual revenue of $1 billion or less and are working with channel partners in North America. A complete list of the 2024 Stellar Startups can be found here.

Some of the companies on this year’s list, while not exactly household names, are already making waves including Wiz and Deepwatch in security, Nile in networking, Airbyte in big data, and Tecton in AI and machine learning. Other startups on the list that have only recently launched include Hatz AI, MotherDuck, HiddenLayer and DataPelago.

DataPelago, founded in 2021 and based Mountain View Calif., just exited stealth in October with its “universal data processing engine” technology that the company says can handle the volume and complexity of today’s data for a range of data analytics and AI workloads.

“Data is changing, the applications are changing and, most importantly, [IT] infrastructure is changing. When you have three different disruptive trends coming all together, it requires you to step back and see what the next world looks like and what should be the data processing platform,” said Rajan Goyal, DataPelago co-founder and CEO, in an interview with CRN.

Hatz AI, founded in 2023 and based in New York, has developed a platform that helps MSPs build an AI-as-a-service business with AI applications and agents, vector storage and custom large language models.

“Over the course of the past year, I realized that there was very little AI usage for MSPs to take to their customers. There are a lot of emerging companies that are doing great work in helping MSPs integrate AI inside their own business or working on their help desk, but I experienced the power of using AI in your own business and for productivity. I realized that small businesses couldn't adapt to this stuff, and they would turn to their MSPs to do it the same way they did for cybersecurity, IT and other big technology problems in the past,” Hatz AI CEO and co-founder Jimmy Hatzell told CRN in early 2024.

One downside: Venture capital has been harder to come by in recent years, making the task of starting an IT company even more challenging. But the money is out there. At its launch DataPelago said it had raised $47 million in seed and Series A funding. In August data management and observability startup Cribl raised an impressive $319 million in Series E funding.

Robotic process automation platform startup Rewst recently said it had secured $45 million in Series C funding. “We’re growing super, super quickly and so I have to hire at a very fast rate,” founder and CEO Aharon Chernin told CRN, saying in August that he expected the company’s roster of about 100 employees to double over the following 12 months.

Major players in the IT industry recognize the innovations that startups can provide. In June Cisco debuted a $1 billion global investment fund with the goal of making strategic investments in startup companies that build products based on Cisco’s strategy and architecture.

Innovative startups are also potential acquisition targets for established IT companies looking to boost the innovation quotient of their own product portfolios. In Late October Kaseya said it bought SaaS Alerts, a security startup on this year’s Stellar Startup list. In August Fortinet acquired data security startup Next DLP, which made the Stellar Startups list in 2023.

Throughout this week CRN is running slide shows with the Stellar Startups in key technology categories including:

* Artificial Intelligence
AI is the hottest segment of the IT industry right now. As part of CRN’s Stellar Startups for 2024, here are nine AI and machine learning technology startups, founded in 2018 or later, that solution providers should be aware of.

* Big Data
As part of CRN’s Stellar Startups for 2024, here are 10 big data technology startups, founded in 2018 or later, that solution providers should be aware of.

* Business Applications
Operational applications are how businesses and organizations generate value from IT. As part of CRN’s Stellar Startups for 2024, here are five business application startups, founded in 2018 or later, that solution providers should be aware of.

* Cloud
Managing today’s complex hybrid and multi-cloud environments can be a major challenge. As part of CRN’s Stellar Startups for 2024, here are four cloud startups developing next-generation tools for managing cloud systems and keeping cloud costs under control that solution providers should be aware of.

* Data Center
Managing increasingly distributed IT systems is a major challenge for IT managers and MSPs. As part of CRN’s Stellar Startups for 2024, here are four data center technology startups, founded in 2018 or later, that solution providers should be aware of.

*Internet of Things/Edge Computing

* Networking and UCC
The proliferation of hybrid/multi-cloud IT environments, coupled with the shift to remote work, is driving demand for more robust corporate networks and expanded unified communications capabilities. As part of CRN’s Stellar Startups for 2024, here are four startups developing next-generation networking technology that solution providers should be aware of.

* Security
Cyberattacks are unrelenting and rapidly evolving and businesses are demanding the latest defensive weapons to fight back. As part of CRN’s Stellar Startups for 2024, here are 41 security startups, founded in 2018 or later, that are developing leading-edge cybersecurity technology that solution providers should be aware of.

* Storage
Data volumes are exploding even as data assets become more valuable. As part of CRN’s Stellar Startups for 2024, here are four storage technology startups, founded in 2018 or later, that solution providers should be aware of.

C.J. Fairfield contributed to this story.