Carbonite Raises $20 Million Mezzanine Round Financing - Crosslink Capital of San Francisco led this round with participation from all existing investors
Carbonite®, a leading provider of online backup, announced today that it has closed a mezzanine round of funding that provides approximately $20 million of new capital. This brings the total financing raised by the Boston-based company to approximately $67 million. While the company does not disclose specific terms, the valuation of the mezzanine round is a major step up from previous rounds.
Crosslink Capital of San Francisco led this round with participation from all existing investors, including Menlo Ventures, Performance Equity, and Common Angels Fund. Gary Hromadko, venture partner at Crosslink, will join the Carbonite board of directors.
"We're focused on delivering the best online backup service in the world," said Carbonite CEO and Co-founder David Friend. "This investment enhances our ability to continue to lead innovation here in the US and to expand our offerings to new foreign markets."
Carbonite launched its online backup service for PC owners in 2006. In the last year, Carbonite expanded its product offering to include a Macintosh solution and Remote File Access, which enables any Carbonite user to access backed up files from any web browser. Additionally, the company has forged distribution agreements with Seagate and Sun Microsystems.
"Carbonite is the leading independent vendor in a market with enormous potential," said Hromadko. "The management team has experience and depth, has executed on its business model and delivered excellent results each year since the founding of the company. Almost anyone in the world with a computer and a broadband connection needs a service like Carbonite. The mezzanine round that we led will help the company to accelerate its growth in the US, expand into new markets, and introduce new products. Carbonite certainly didn't need to raise more cash at this point, but this is the kind of business and management team that Crosslink likes to be involved with, so we were very pleased to be able to make the investment."
The Carbonite industry-first offer of unlimited online backup service for a flat, low price revolutionized the market for consumer and small business backup services. Since 2006, the company has backed up more than 39 billion files and has restored more than 3.2 billion lost files for its customers. Carbonite backs up more than 100 million files every day to high-redundancy storage servers in its Boston and Somerville, Mass. data centers.
David Friend - Chairman & CEO, Co-founder
David Friend has been a successful technology entrepreneur for over 25 years. He previously co-founded five companies: Sonexis, FaxNet, Pilot Software, Computer Pictures Corporation and ARP Instruments. He has been featured in USA Today, Tech Capital, The Boston Globe, Mass HiTech, Fortune, Forbes and Tom Peter's best-selling management book, The Pursuit of Wow!
Keith Cooper - President & COO
Keith W. Cooper is an experienced internet telecommunications entrepreneur. Prior to joining Carbonite, Keith was a Venture Partner at VIMAC Ventures in Boston focusing on investments in early stage high tech companies. While at VIMAC, Keith became Chairman and CEO of webHancer, an Ottawa based company focused on web analytics. Keith and his team reorganized and repositioned the company over an 18 month period and successfully sold the company to Microsoft.