Original URL: http://www.theregister.co.uk/2011/08/11/carbonite_ipo/
Carbonite IPO raises over $62 million
Cloud backup bucks the bucking market
Posted in Financial News, 11th August 2011 17:10 GMT
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Cloud IT–anything is sexy, and cloud backup–service company Carbonite has proved it by raising $62.5m in a market that's supposed to be hostile to IPOs right now.
The company originally wanted to raise $100m [1] or more, and had to scale back its desired stock price from the $15 to $17 per share area to a much more modest $10. Still, $62.5m is not bad – not in today's climate – and it may be that Carbonite barely scraped through an IPO door that's now swinging shut.
Carbonite can use the cash to build out its cloud backup data centre infrastructure and fund sales and marketing programmes.
The company has consumed $67m in funding, so a mega-payout for their venture capitalist backers isn't going to happen. Carbonite now has to bulk up its customer base and move into profitability. ®