Cloud computing startups are back in a big way, and Clumio just made it official by scooping $135 million in funding 3 months after it launched
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- Clumio, a startup that provides data backup services for other companies, announced $135 million in Series C funding on Tuesday. The company officially launched in August.
- Clumio cofounder and CEO Poojan Kumar told Business Insider that he thinks the round is one of the largest for an enterprise software-as-a-service startup of that size.
- Cloud-based services like Clumio have been some of the biggest sleeper hits of 2019, with surprising public offerings and massive funding rounds for lesser-known companies while high-flying unicorns have largely disappointed.
- In August, Clumio had launched with tools for on-premise data management. On Tuesday, the company also announced its tool for data backup from AWS EBS, the most common cloud services provider to startups and larger companies alike. Kumar said that Clumio will address similar functionality for Microsoft’s Azure customers next.
- Kumar told Business Insider that if you had asked him about funding in August, he would’ve said the company was thinking about it for mid-2020.
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Just three months after launching, cloud services startup Clumio raised one of the enterprise world’s largest Series C funding rounds.
The data backup-as-a-service startup announced $135 million in Series C funding on Tuesday. The round was led by Sutter Hill Ventures, with participation from Index Ventures and Altimeter Capital of Twilio, Okta, and Snowflake fame.
“We are closing what I think is one of the largest Series C funding rounds for a SaaS company,” Clumio cofounder and CEO Poojan Kumar told Business Insider.
Although Clumio doesn’t actually claim the top spot for most raised — that recognition goes to robotic automation startup UiPath — it can claim fame as one of the fastest. The massive influx of fresh funding comes just three months after Clumio’s public launch and only two years after Kumar officially started working on the idea in October 2017. His previous startup, PernixData, was acquired by Nutanix shortly before.
“The rate at which we are growing, we would have gone and raised anyways, maybe call it Q2 next year,” Kumar said. “But we got everything we were looking for about 6 months earlier, and we will take it because it puts us in a place to accelerate.”
According to Kumar, Clumio had only burned through about 20% of its original funding before landing its biggest check yet. Like public markets, VCs are being forced to reconsider profitability and reasonable revenue models over eye-popping customer growth, and so cloud startups are back in the game after losing favor to flashier consumer-facing startups promising massive returns. Now, cloud computing startups are using reasonable growth projections and sustainable revenue models to give investors realistic returns, and it seems that VCs are ready for that kind of stability.
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The hype really started at security company VMWare’s annual conference in San Francisco at the end of August. Clumio had officially launched and announced its $51 million in total funding in Series A and Series B rounds. But as the conference wore on, Clumio continued to stay in the running for