AAA VeloCloud keeps wheels spinning with $35m

VeloCloud keeps wheels spinning with $35m

US-based networking technology developer VeloCloud Networks closed a $35m series D round yesterday that featured telecoms firm Telstra and networking equipment manufacturer Cisco.

The two corporates, which participated through respective investment subsidiaries Telstra Ventures and Cisco Investments, supplied funding alongside Hermes Growth Partners, which led the round, and Malaysia’s sovereign wealth fund Khazanah Nasional.

New Enterprise Associates (NEA), March Capital Partners, Venrock and unnamed strategic investors also contributed to the round.

VeloCloud has developed software-defined wide area networking technology that allows companies to boost the performance of private, internet and wireless communication links. The company currently counts more than 600 clients, with its technology used across more than 50,000 locations.

The funding will go towards business expansion, extended capacity and boost operations as VeloCloud accelerates its product development, conducts larger rollouts and increases its sales and marketing activities.

VeloCloud has now raised a total of $84m. Cisco Investments co-led a $27m series C round in January 2016 with March Capital Partners and another, unnamed backer. NEA and Venrock also joined that round.

Remaining investors include incubator Fabric, which supplied an undisclosed amount in seed capital in 2012.

Mark Sherman, managing director of Telstra Ventures, said: “Telstra Ventures is very excited to join this round of VeloCloud funding.

“Telstra and VeloCloud are completely aligned on the vision of delivering network agility and architectural flexibility to enterprise customers, and we see huge opportunities for both, especially in the Asia-Pacific region.”

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