DigitalOcean, closes its Series C funding round, after raising a $50 million in venture financing
Fremont, CA: DigitalOcean, the cloud technology-based company closes its $50 million Series C funding round. The latest round was led by Access Industries, with the support of Andreesen Horowitz. The funding round followed a $320 million debt financing that was arranged in February. In total, the DigitalOcean's equity valuation comes to a whopping $1.15 billion.
"We are excited about this investment to support DigitalOcean as it enters its next phase of significant growth," said Pueo Keffer, managing director at Access Industries. "We remain extremely impressed with the company and its management and believe that both are well-positioned to transform the cloud space for developers and SMBs in the years ahead."
"We are delighted to extend our partnership with Access and a16z and see this capital as adding strength to our balance sheet enabling us to better serve our customers' demand for our platform, especially during COVID-19 where we are seeing an acceleration of businesses transitioning to the cloud," said Yancey Spruill, CEO at DigitalOcean. "We are now freed up to focus on accelerating revenue growth, transitioning to free cash flow profitability in 2020, and positioning our company ultimately to be a public company."
From its inception in 2012, DigitalOcean has grown its business continuously with $300 million in annual recurring revenue, catering to more than 500,000 customers across the globe, with almost 70 percent of its clientbase located outside the U.S. By creating a strong niche in the $200 billion cloud market, the company works with developers, entrepreneurs, and small businesses who choose to apply DIgitalOcean's easy-to-use, affordable and scalable infrastructure over complex and cost-prohibitive options provided by other players in the market.
DigitalOcean and its offering - the developer cloud simplify modern app development for the next generations of developers - including those who are freelancing to startups and SMBs. Its' service is both Infrastructure-as-a-Service and software-as-a-service, inhibiting the use of DevOps experience, and allowing the developers to concentrate solely on creating innovative software. With the combination of simplicity's essence, love for the developer communities, an obsession for customer service, and the advantages of open source, the company DigtialOcean offer software development within technical and economic reach of the day, as they work with technicians and entrepreneurs around the world.