Datto, a Norwalk, Conn.-based provider of data backup software, services and appliances, announced this week that it raised $75 million in a Series B round of financing led by Technology Crossover Ventures. To date, the company has raised $100 million.
Business is good at Datto, according to founder and CEO Austin McChord. Instead of keeping the lights on at the firm, the additional funds will help his company grow its presence internationally.
“Since we are cash flow positive, Datto isn’t raising capital to fund operations, but instead, to enter new markets and build new products and technology,” said McChord in a statement. “With this new investment, Datto is excited to be pushing ahead to build new technology and improve the experience for our MSPs [managed service providers] and end users around the world.”
MSPs figure prominently in Datto’s business strategy, McChord revealed in a Q&A posted to the company’s official blog.
“For our partners, it really validates the value of the MSP market,” he stated. “To achieve this scale in the MSP space is something that’s worth talking about. MSPs are a huge part of the IT ecosystem around the world.”
Noting that his company is profitable, McChord said he viewed the new funding “as gas in the tank for the future.” The added cash “gives Datto the confidence to enter more regions faster. It will allow us to enter more markets next year than we would have been able to without it,” he said.
Datto specializes in cloud-aware, data protection and business continuity services for organizations ranging in size from small businesses to large corporations.
The company’s product portfolio includes Backupify, a cloud-to-cloud backup and recovery service that enables businesses to safeguard Google Apps, Microsoft Office 365 and Salesforce data, among other software-as-a-service applications.
At last count, Backupify boasts nearly two million business users and over three petabytes (PBs) of protected data.
Datto’s other offerings include the small business-focused Alto appliance that employs image-based backup technology and hybrid cloud storage. For enterprises, Siris appliances provide cloud-enabled business continuity that encompasses both physical and virtual systems, and uses the company’s Screenshot Backup Verification automated backup testing technology. (Its virtualized counterpart was named to InfoStor’s Virtual Storage Buying Guide earlier this year.) Finally, Datto NAS provides cloud-protected file storage, share and sync capabilities.