CloudHealth Technologies corrals another $20m from investors
CloudHealth Technologies, a Boston startup that helps companies manage cloud-dwelling data, has raised another $20 million from investors, bringing its funding total to nearly $40 million since the company launched in 2013.
The move comes one month after CloudHealth appointed the venture capitalist and entrepreneur Larry Begley as its chief financial officer. Begley cofounded .406 Ventures, a venture capital firm that has invested in CloudHealth since the beginning.
CloudHealth, which is based at Fort Point, says businesses can use its software to maximize the efficiency of their cloud storage systems through big data analytics and automation. It counts Amtrak, Dow Jones, and Pinterest among its more than 500 customers.
The Series C funding was led by Sapphire Ventures, an investment firm based in Palo Alto, Calif., whose two active funds are valued at more than $1 billion.
Scale Venture Partners, .406 Ventures, and Sigma Prime Ventures also invested this round. Jai Das, managing director at Sapphire Ventures, will be joining CloudHealth’s board of directors.
Dan Phillips, chief executive of CloudHealth, said the new funding will go toward expanding many aspects of the business, including sales, engineering, and customer support.
As companies of all sizes and scope continue to choose the cloud as their preferred method of data storage, investors have taken note.
Venture capitalists worldwide see cloud computing as the safest tech-sector investment, according to a 2015 report by Deloitte that surveyed 208 investors in the Americas, Europe, the Middle East, and the Asian Pacific region.
Those venture capitalists saw Boston as a major center for innovation, reporting high levels of investor confidence in the region’s startup ecosystem, third in the nation, just behind Silicon Valley and New York.
Phillips said his company became profitable quickly; the privately held company does not disclose revenue figures.
But the company says that its revenue quadrupled in 2015, and the company sees an IPO in the “near future,” according to a company statement.
“The cloud is attractive,” said Phillips, who expects to nearly double his workforce by the end of 2016. “We see Boston as a hub for this type of cloud management activity, and we’ve been very fortunate to have investors that encouraged us to grow the company the right way.”