As you can imagine, we are very excited to announce that we just closed a $7M Series A round of financing!
We were able to raise the money on the strength of our vision and our 2011 results. nScaled was a pioneer in recovery-as-a-service (RaaS) three years ago, when no one know what the heck RaaS was and everyone thought disaster recovery was a boring market, dominated by goliaths like Sungard and IBM, catering exclusively to huge customers who could afford to spend millions of dollars every year for redundant capacity. nScaled is now a leader in the suddenly hot RaaS market, a market that now is getting plenty of attention from the analyst firms and the tech press.
Of course, our customers have known about nScaled for several years, and we added a bunch more in 2011. By all measures – number of customers, new bookings, recurring revenues, number of servers protected, and terabytes of storage under management – nScaled tripled its business in 2011.
Here’s the full text of the announcement:
nScaled Announces Series A Investment by Almaz Capital and Doughty Hanson Technology Ventures
$7M investment to accelerate nScaled’s global expansion of its Recovery-as-a-Service offerings
San Francisco – February 22, 2012 – nScaled, a pioneering provider of cloud-based Recovery-as-a-Service (RaaS) solutions, today announced that it has completed a Series A round of financing, securing $7 million in investments from Almaz Capital and Doughty Hanson Technology Ventures, as well as leading Silicon Valley angel investors. The investment will be used to fund nScaled’s growth, including expansion of its global network of data centers and new software development, as well as sales and marketing efforts.
Peter Loukianoff, co-founder and managing partner of Almaz Capital said, “In nScaled, we found a company that is in prime position to command a dominant role in the emerging market of cloud-based disaster recovery. nScaled’s technology platform will enable the company to broaden its service offerings in the future and allow customers to take full advantage of the cloud and its enormous economic and operational benefits. Cloud-computing is forcing dramatic structural changes in the way software applications are consumed by companies of all sizes and nScaled is well-positioned to capitalize on this tectonic market shift.”
“We invested in nScaled because we believe there is a gap in the market for technology that simplifies and reduces the cost of providing disaster recovery,” added George Powlick, managing director at Doughty Hanson Technology Ventures. “nScaled’s early success and the market’s acceptance of Cloud-based recovery services make us confident that nScaled will become a leader in the market.”
“2011 was a stellar year for nScaled. We tripled the size of our business by virtually all measures and we have similarly aggressive growth plans for 2012,” said Mark Hadfield, CEO of nScaled. “This funding will help us achieve that growth and position us as one of the dominant players in Recovery-as-a-service.”
As part of its growth strategy, nScaled recently announced the availability of free accounts designed to provide prospective customers with a fast and easy way to discover Cloud-based disaster recovery, backup and archiving capabilities for their VMware data centers.
About Almaz Capital
Almaz Capital is one of the leading venture capital firms serving entrepreneurs and companies with ties to Russia and the Commonwealth of Independent States (CIS). Investors and strategic partners of the firm include industry leaders, such as Cisco, the European Bank for Reconstruction and Development (the “EBRD”), and UFG Asset Management. Almaz Capital primarily targets early and expansion stage investments in high growth sectors, including Technology, Digital Media, and Communications. In addition to extensive experience in Russia and the CIS, the firm’s network in Silicon Valley offers portfolio companies an effective local investment partner with global reach. For more information please go to http://www.almazcapital.com/
About Doughty Hanson Technology Ventures
Doughty Hanson Technology Ventures invests in exceptional entrepreneurs and management teams that have the passion, commitment and vision to conceive great ideas and build global businesses. Their investment strategy targets companies that develop sophisticated and proprietary technologies and focuses on three industry sectors: internet software, mobile communications and clean energy technology. For more information please go to http://www.doughtyhanson.com/
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