PeakColo, a channel-based infrastructure as a service (IaaS) cloud service provider (CSP) has received some add on venture funding as well as a new debt facility, money earmarked for the company's geographic expansion. Here are the details about the sources of funding and what the company plans to do with the new capital.
PeakColo received $1.5 million in follow-on funding from Meritage Funds and Sweetwater Capital to the $7.5 million in growth equity capital it raised in August 2012. The company said this financing will be used to support PeakColo's expansion of its cloud node capacities in existing locations. In addition, the company secured a debt facility of $3 million from Square 1 Bank, a banking partner to entrepreneurs and the venture capital community, to support demand for cloud services throughout existing markets and growth into new markets.
Ken Fugate, founder and SVP in Square 1 Bank's Mountain Northwest Region, said in his prepared statement that the bank is impressed with PeakColo's growth and business model, which is proving to be profitable and repeatable in various locations.
PeakColo founder and CEO Luke Norris said in his prepared remarks that the company is growing 100 percent year over year.
"PeakColo's 100 percent channel-centric model drives us to constantly expand and update our equipment, network and IT architecture to keep up with the demand from our channel partners," he said. "We continue to see existing financial institutions make further investments in PeakColo, which illustrates a true confidence in our business model."
PeakColo offers channel providers white-label VMware (VMW) vCloud(R)-Powered cloud computing platforms in six geographies across the United States and in Europe including Seattle, Denver, Chicago, New Jersey, New York, and the United Kingdom.
Learn more about the PeakColo partner program on the company's website.