Thursday January 26, 2017 0 comments
DENVER -- Faction, an enterprise-class Infrastructure-as-a-Service (IaaS) cloud provider, announced it has raised $11 million in January.
Longtime investment partners Meritage Funds and Sweetwater Capital and new equity investors, Charterhouse Strategic Partners and Rifkin-Pottle Group, as well as debt financing from Ares Capital Corporation, fueled the most recent round of funding.
Faction said the $11 million in debt-and-equity capital will be used for company expansion and to meet the company’s explosive customer demand.
In 2016, Faction experienced 44% year-over-year growth and expects similar results in the year ahead.
"The continued substantial support we're receiving from reputable and knowledgeable investors is a testament to the groundbreaking technology developments we're creating in the cloud arena, especially with our unique hybrid cloud and multi-cloud environments," said Luke Norris, Faction CEO and founder.
"This new funding round will go toward serving our rapidly growing customer base, bringing new products to the market, expanding our employee base and growing our global footprint. Look out for a steady stream of news from Faction this year."
"The Faction team has earned our respect and enthusiasm by consistently delivering strong top-line growth coupled with substantial gross margins," said David Solomon, Meritage Funds managing director.
"Faction's IaaS offerings clearly met and exceeded the needs of the Company's target customers as evidenced by the addition of a record number of new customers, a record setting number of Faction customers expanding their current service and customer retention rates well in excess of industry expectations.
“It is obvious that Luke Norris, along with the entire executive team, are fully committed to the highest level of service along with continued expansion of the company's enterprise-class IaaS cloud and hybrid cloud solutions to meet and exceed current and prospective customers' needs in our niche of the cloud infrastructure marketplace."