- DigitalOcean, a cloud for developing modern apps, announced it raised $50 million in Series C funding at a valuation of $1.15 billion
DigitalOcean, a cloud for developing modern apps, announced it raised $50 million in Series C funding at a valuation of $1.15 billion. This round of funding was led by Access Industries with participation from Andreessen Horowitz (a16z). And the funding follows a $320 million debt financing in February.
“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.”
Launched in 2012, DigitalOcean is a high-growth business with $300 million in annual recurring revenue (ARR), serving over 500,000 customers globally (with nearly two-thirds located outside the U.S.). And the company has created a strong niche in the $200 billion cloud market by catering to developers, entrepreneurs, and small businesses who opt to use DigitalOcean’s easy-to-use, affordable, and scalable infrastructure over complex and cost-prohibitive options provided by others in the market.
“We are excited about this investment to support DigitalOcean as it enters its next phase of significant growth,” added 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.”