DigitalOcean Raises $3.2 Million in Funding to Expand IaaS Solutions

Grazed from The Web Site Host. Author: Editorial Staff.

Infrastructure-as-a-service provider DigitalOcean announced on Wednesday it has raised a $3.2 million seed round led by IA Ventures, with participation from CrunchFund and TechStars. The move comes a few months after DigitalOcean suffered a data breach that impacted a “small percentage of customers”, and promptly rolled out a fix for those affected customers.

DigitalOcean nearly has 350,000 cloud servers to date, adding an average of 500 new subscribers a day. The company says it plans to use the proceeds from this funding round to hire more marketing and engineering employees, as well as build out its infrastructure…

The funding round comes at an opportune time, as DigitalOcean’s rapid growth has created an increasing need for more servers and bandwidth to meet this demand. Uretsky also noted that its fast and early growth often meant the company ended up in a capacity crunch and, at times, couldn’t add users as fast as it wanted to because it simply didn’t have enough resources available in its data centers…

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