CloudHealth Technologies Raises $46 Million on Path to IPO
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Cloud management firm CloudHealth Technologies has raised $46 million in a Series D funding round led by Kleiner Perkins, and will nearly double its workforce to 250 by the end of the calendar year, the company announced Tuesday.
CloudHealth is moving towards an IPO, and has now raised a total of $86 million, having picked up $20 million in its last funding round just over a year ago.
Kleiner Perkins, which has provided venture capital to many successful U.S. internet companies including Amazon, Google, and Twitter, is a new investor for this round. Existing investors Sapphire Ventures, .406 Ventures, and Scale Venture Partners, as well as new investor MeriTech Capital Partners also participated in the round.
“CloudHealth Technologies is capitalizing on one of the most profound transitions in IT history by helping its customers navigate and optimize the adoption and usage of cloud infrastructure,” Alex Kurland, partner at Kleiner Perkins said in a statement. “The team identified an opportunity in hybrid cloud management early on and executed on its vision, establishing itself as the clear leader in the market. It’s rare to see a company that provides such immediate and immense value to both cutting-edge technology startups and Fortune 500 enterprises alike.”
The company's revenue increased by more than 130 percent in 2016, and it has opened offices in Amsterdam, Singapore, Sydney, Tel Aviv, and Washington D.C. So far in 2017. CloudHealth says it now serves more than 1,300 direct and indirect customers.
“This investment will help propel us into the next stage of growth as we scale the entire company,” Dan Phillips, CEO and co-founder of CloudHealth Technologies said. “We’re thrilled to be backed by venture capital firms with such a strong reputation for launching many of today’s biggest technology stars. Their expertise and proven track record will ensure that we continue to dominate our market, make strategic hires and roll out customer-driven enhancements that have a serious impact on our customers’ bottom lines and gross margins.”
CloudHealth's flagship platform extended support from public cloud to include VMware and physical server environments in May.
There have been other signs that the cloud management market may be heating up. Cloud Cruiser was acquired by HPE earlier in the year for an undisclosed amount, and Cloudability, another cost-focused cloud management company, raised $24 million in Series B funding a year ago.