US-based cloud infrastructure company DigitalOcean completed a $50m series C round yesterday led by diversified conglomerate Access Industries.
Venture capital firm Andreessen Horowitz also participated in the round, which valued DigitalOcean at $1.15bn.
Founded in 2012, DigitalOcean provides scalable cloud infrastructure for developers that facilitates the global deployment of applications. It has attracted more than 500,000 clients to date, with two-thirds of these located outside the US.
The money will allow DigitalOcean to cope with increased demand as businesses accelerate their transition to cloud-based offerings during the pandemic. The company is targeting profitability this year before an initial public offering later down the line.
Pueo Keffer, managing director at Access Industries, said: “We are excited about this investment to support DigitalOcean as it enters its next phase of significant growth.
“We remain extremely impressed with the company and its management and believe that both are well-positioned to transform the cloud space for developers and SMEs in the years ahead.”
Access Industries previously led an $83m series B round in 2015 that also included Andreessen Horowitz, after the latter had participated in a $37.2m funding round the previous year together with IA Ventures and Tuesday Capital (then known as CrunchFund).
IA Ventures led a $3.2m seed round in 2013, with commitments from Tuesday Capital and TechStars.
DigitalOcean’s backers also include telecommunications conglomerate SoftBank through its $3.3bn acquisition of investment manager Fortress Investment Group in 2017. Fortress had supplied $50m in debt financing to DigitalOcean in 2014.
