Andreessen Horowitz was joined by IA Ventures and CrunchFund (an early stage venture capital firm founded by Michael Arrington, Patrick Gallagher, and MG Siegler), in a $37.5m series A round of funding for DigitalOcean. The cloud hosting service that caters to developers, will use the funds towards purchasing a “boat-load of servers and networking gear” and expanding its engineering team.
According to the company in the past 15 months , with only a handful of engineers, the business has been able to launch over one million serves, processed 18 million events and opened new datacentres in San Francisco and Singapore for over 100,000 customers.
The company was founded in 2011 with three engineers that built the first version of its product. The company said with the help from the Hacker News community its growth “exploded” when the company announced its SSD powered cloud. SSD is a storage device that stores persistent data on solid-state flash memory.
To date, DigitalOcean has raised $40.2m. Other investors include Techstars.