Cloud Computing Startups Raise Big Money
Startups have been an area of focus for this website, and not without reason. With cloud computing being such a new technology, there is a lot of innovation taking place. And startups are often the birthplaces of innovation. However, innovation, like most things in life, requires money, at least initially, in order to flourish. That is where venture financing comes into play.
Thankfully for cloud computing startups, there are many financiers willing to back them. Here’s a recap of some recent developments in this area.
Box.net: This is a company that I had covered earlier, in February (See: Venture Capitalists Flock To Cloud Computing Startup). At that time, it had already raised $77.5 million of venture capital. Now, in an endorsement of its functioning, the company has raised $18.6 million more out of a $35 million round. Box.net offers cloud storage with collaboration, social and mobile functionality, and has 6 million users at present.
Cedexis: Cedexis, a French cloud computing company with an office in Portland, has raised $6 million in Series A financing from Seattle VC Madrona Venture Group and Palo Alto-based VC Advanced Technology Ventures. The company helps clients monitor and optimize online applications stored in the cloud, and has 130 customers, including several large consumer brands like Izod, Dior, Le Monde and Volkswagen.
Okta: San Francisco-based cloud services management startup Okta has raised $16.5 million in a Series B financing from previous investors Andreessen Horowitz and Floodgate Fund, and new investors Greylock Partners and Khosla Ventures. This capital is in addition to the $10 million the company raised in Series A financing in July. According to the company, the money
6fusion: North Carolina-based 6fusion, a developer of cloud infrastructure management software, raised $7 million in a second round of financing led by Grotech Ventures, a Vienna-based VC that focuses on technology startups. Intersouth Partners, which led the company’s first institutional round a year ago, also participated. Grotech will also place a member on 6fusion’s Board.
Wanova: San Jose-based Wanova, a turnkey desktop management cloud provider, has raised $10 million in series B funding from Greylock Partners, Carmel Ventures and Opus Capital, bringing its total capital raised to $23 million. The company has developed its Mirage software that combines several different technologies to make it easier for companies to manage their computers. Evidently, it’s getting a lot of positive response as sales have tripled over the last year.
As is quite evident, cloud computing startups, as long as they have innovative products and ideas to commercialize them, are not facing any problems in raising money. This augurs well for the cloud computing industry as a whole as innovation is the engine that drives growth in any industry.
By Sourya Biswas