CloudHealth Scoops Up $20M to Expand in IT Management
The shift to cloud computing has created plenty of openings for businesses big and small to help manage cloud infrastructures and analyze the vast amounts of data that companies and organizations are accumulating.
One such startup, Boston-based CloudHealth Technologies, has been rising fast. And it’s about to build on its recent momentum, thanks to a $20 million Series C funding round announced today. Four-year-old CloudHealth has raised $39.7 million from investors to date.
The latest investment was led by new backer Sapphire Ventures, with contributions from previous CloudHealth investors Scale Venture Partners, .406 Ventures, and Sigma Prime Ventures. Sapphire Ventures managing director Jai Das will join CloudHealth’s board.
“We are very impressed with CloudHealth’s leadership, strategy, and ability to execute in this rapidly evolving market,” Das said in a prepared statement. “As the cloud plays an increasingly integral role in enterprise business, companies that can wring the most value out of their cloud resources are going to come out on top. CloudHealth helps its customers do just that, and we look forward to applying our enterprise experience and network to help the company drive growth.”
CloudHealth says its software helps customers boost the efficiency of their computing systems, make better sense of all their data, and ultimately lower their business costs while improving performance. It’s a crowded field, but CloudHealth seems to have found an approach that resonates with customers. CloudHealth’s clients include Amtrak, Dow Jones, Acquia, and Sumo Logic. The company quadrupled its annual revenue last year, a spokeswoman said.
CloudHealth grew from 69 employees at the end of 2015 to over 100 today, the spokeswoman said. One of those recent hires is Larry Begley, who invested in CloudHealth when he was at .406 Ventures and saw enough promise to join the startup as its chief financial officer last month.
Now, the plan is to keep the foot on the gas. CloudHealth intends to grow its staff to over 150 people by the end of the year, the spokeswoman said. Most of them will be based at an expanded Boston headquarters, but CloudHealth is also growing its international presence.