Cloud-based startup Axcient raised $25 million in a series E funding round this week, bringing the total amount it has raised to $113.5 million. The company plans to hire more engineers, build out sales and marketing in Europe and launch a program that pays partners upfront when they resell Axcient’s cloud service.
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“We are giving them two years of margins upfront,” Axcients CEO Justin Moore said. “In general, in a software-as-a-service model, it takes 12 to 18 months to break even on the amount of spending on sales and marketing to acquire customers. VARs run a cash business, not an equity business. This is a way to incentivize VARS.”
Axcient has a backup and disaster recovery-as-a-service cloud platform that protects data, applications and IT infrastructure from downtime and data loss. Its flagship Business Recovery Cloud backs up and mirrors customers’ entire business in the cloud, which includes emails, files, application, operating system and the network. The new reseller compensation program is called SaaS:FLO.
Moore said the latest $25 million will be used to hire at least 20 more engineers, bringing the number up to 80, and add 30 to 40 percent to the sales and marketing head count. He also plans to open a data center in Europe in the third quarter. Axcient, which has 170 employees, currently claims more than 4,000 customers.
Last year, the company had a 50 percent growth in new customers. It acquired the Delaware, NJ-based DirectRestore for an undisclosed amount, adding more granular recovery technology for files, objects, databases and applications at faster speeds.
Moore said Axcient also put out more than 30 new releases to its Business Recovery Cloud in 2014, improving performance for recovery point objectives and system failovers.
Axcient launched in 2008 with a $6 million series A funding round supplied by Peninsula Ventures, Allegis Capital and Peninsula Capital. Its largest round was a $50 million series D round in 2013. The latest investment round was led by Industry Ventures, with investors Allegis Capital, Peninsula Ventures, Scale Venture Partners and Thomvest Ventures participating. Silver Lake Partners provided new debt financing.