DigitalOcean Raises $83M to Help Move Cloud Provider Forward
July 9, 2015
Grazed from eWeek. Author: Sean Michael Kerner.
Cloud vendor DigitalOcean today announced that it has raised $83 million in a Series B round of funding led by Access Industries and with the participation of Andreessen Horowitz. The new funding, according to Ben Uretsky, co-founder and CEO of DigitalOcean, will help finance his company’s growth, buying new servers and investing in the facilities and assets that are needed to move the company forward.
"We’re trying to look two to three years ahead to understand what the capital needs of the business are," Uretsky told eWEEK. "When you go out to raise capital, what you’re doing is balancing the valuation against the time horizon." To date, DigitalOcean has raised $123.4 million in venture capital, with a $3.2 million seed round of funding in July 2013 and a $37.2 million Series A round in March 2014…
Uretsky said that DigitalOcean has been profitable but also has gone through periods where it is burning cash. Currently, the company is on track to return to profitability later this year; overall, the business is fundamentally solid with profit margins that exceed those of Amazon’s Web Services (AWS) cloud business, he said. Uretsky declined to provide a specific figure for DigitalOcean’s current profit margins…
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