Cloud Computing Startups Raise Big Money: UPDATE 6
This is the seventh in a continuing series on startups raising funding. You can read the first six in the series here:
1. Cloud Computing Startups Raise Big Money: UPDATE 5
2. Cloud Computing Startups Raise Big Money: UPDATE 4
3. Cloud Computing Startups Raise Big Money: UPDATE 3
4. Cloud Computing Startups Raise Big Money: UPDATE 2
5. Cloud Computing Startups Raise Big Money: UPDATE 1
6. Cloud Computing Startups Raise Big Money
Today, there are two startups in focus – Code 42 and Knowlarity.
Code 42 (http://code42.com/)
Minnesota-based cloud backup company Code 42 has announced the close of its first round of external funding, raising $52.5 million from Accel Partners with participation from Split Rock Partners. Accel, one of the biggest investors in Facebook, announced this investment from its Big Data Fund, dedicated to funding companies dealing with large-scale data management. While Code 42 does not disclose revenues, it is reported to have been profitable from inception and experienced 500% growth in the last three years.
Started in 2001 by CEO Matthew Dornquast, CTO Brian Bispala and COO Mitch Coopet, Code 42 is the company behind the popular CrashPlan backup software whose professional version is used by more than 4,000 corporations in 200 countries, including such prominent names as Adobe, Cisco, Google, HP and Salesforce.com. Its rivals include Carbonite, Mozy, Box.net (See: Box.net, Amazon Cloud Drive – The Future Of Cloud Storage And Sharing… ) and Dropbox (See: Cloud Computing Startups Raise Big Money: UPDATE 2 ). The CEO described Code 42 as “part software company, part cloud storage company, and part managed appliance hardware company,” and said that the cash inflow would be used for brand development and international marketing.
Indian cloud telephony solutions provider Knowlarity recently announced that Sequoia Capital, widely recognized as one of the most influential venture firms in Silicon Valley, has acquired a minority stake in the company. While financial terms were not disclosed, the investment seems to be around the $7 million mark.
Established in 2009 by IIT-Kanpur graduates Ambarish Gupta and Pallav Pandey, who currently serve as the CEO and the COO respectively, Knowlarity provides Internet-based communication services to companies and individuals in India and Indonesia. It claims to have more than 40,000 clients, including such prominent names as General Motors, Pepsi and Procter & Gamble.
“We built the company to deliver simple and useful telephony products to help other businesses, primarily in the SME segment,” said Gupta. “Several entrepreneurs run their business on their mobile phones and our idea is to enable them with innovative, inexpensive telephony based products that can help improve the bottom line.” He said that the new funds would be used to bolster R&D and promote international sales.
Mohit Bhatnagar, managing director at Sequoia Capital, expressed his confidence in cloud computing in India and said, “Cloud computing is emerging as the next big wave in India and going forward, we are looking at investing even more in the space.” I have expounded similar views earlier (See: Cloud Computing and India, Emerging Superstars of the 21st Century).
By Sourya Biswas