US-based cloud software provider Faction has completed an $18m series B round featuring Dell Technologies Capital, the corporate venturing vehicle owned by computing hardware producer Dell.
The round was led by River Cities Capital Funds and also featured fellow growth equity firm Meritage Funds and private equity firms Sweetwater Capital and Charterhouse Strategic Partners.
Originally founded in 2006 as Elementek, Faction supplies software that helps clients create and manage hybrid and multi-cloud computing networks. Its technology partners include Dell’s data storage, cloud computing and virtualisation subsidiary, Dell EMC.
The funding will be used to grow the range of products and services the company offers, and to invest in sales, marketing and global expansion.
Luke Norris, Faction’s founder and chief executive, said: “This growth capital is validation that Faction is providing and developing groundbreaking technology in the cloud industry.
“We are ecstatic to partner with great investors who share our vision of a multi-cloud future and are uniquely positioned to help us realise that future today.”
Meritage Funds and Sweetwater Capital had provided $7.5m to the company, then known as PeakColo, in 2012. They added $1.5m the following year and $4m in 2014 before joining Ares Bank to supply $16m in debt and equity financing in later the same year.
Faction raised $6m in equity and debt from the same three investors in 2015, and $11m in a January 2017 round that also featured Charterhouse Strategic and Rifkin-Pottle Group. It had also secured $3m in debt financing from Square 1 Bank in 2013.