Datto scores $75 million to boost global expansion
Backup and recovery powerhouse Datto Inc. got a significant boost for its expansion efforts with a $75 million Series B funding round from a single investor: Technology Crossover Ventures (TCV). The infusion brings Datto’s total fundraising to $100 million, a princely sum for a company that says it’s already profitable. The funding reportedly brings the firm’s total valuation to $1 billion.
Datto provides an end-to-end approach to backing up and securing data in locations ranging from on-premise to the cloud. The company is known for its snapshot capability that enables data to be backed up and verified instantly for rapid recovery in the event of a failure. Its core market has historically been small businesses, but it has recently been expanding into enterprise accounts.
The company, which works primarily through partner channels, says it manages more than 160 petabytes of data and more than one million backups a week. Its core strength is in on-premise data protection, but it boosted its cloud presence with the acquisition of Backupify Inc. last year. In June it introduced a remotely configurable router that its partners can use to improve recovery speed.
Datto founder Austin McChord said the company plans to use the new investment capital to expand its international presence beyond its current eight global offices and to improve its virtual backup capabilities. McChord said the uncertainty surrounding EMCs pending acquisition by Dell Inc. creates additional opportunities. “Any time there’s turbulence in the market it causes people to re-evaluate the solutions they have,” he said.
TCV General Partner Ted Coons will join Datto’s board of directors. Datto also said it’s adding two additional members: Patrick Gray, a board director of Civitas Solutions, Inc. and Ursula Burns, Chairman and CEO of Xerox Corp.
McChord said Datto will bring in more than $100 million in revenue this year, up four-fold from 2012. The company employs 550 people. It previously raised $25 million from General Catalyst Partners in 2013.