Andreessen Horowitz Backs DigitalOcean, a Cloud Computing Start-Up
March 6, 2014
Grazed from DealBook. Author: William Alden.
Ben Uretsky, the chief executive of a cloud computing start-up called DigitalOcean, uttered what may be the ultimate Silicon Valley “humblebrag” when he explained why his company had to raise millions from venture capitalists just months after an earlier financing round. “The challenge was the rate of growth kept increasing,” Mr. Uretsky said in an interview.
That prodigious growth was enough to entice Andreessen Horowitz, one of Silicon Valley’s most prominent venture capital firms, to lead a $37.2 million financing round in DigitalOcean, according to an announcement on Thursday. The start-up previously announced a $3.2 million round in August…
DigitalOcean – in the business of setting up virtual computer servers, partitioning them into slices and selling those slices by the month or the hour – now has more than 100,000 customers, it says. It had just 2,000 at the start of last year. Its industry is dominated by giants like Amazon, IBM and Microsoft that sell server time to corporations. But DigitalOcean tries to stand out by focusing on smaller customers, like individual developers, and putting an emphasis on simplicity…
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