Latest Round of Financing for Loudcloud Pushes Total Funding Toward $200 Million Mark; Capital Research and Management Leads $120 Million Round of Financing.Business/High-Tech Editors
SUNNYVALE, Calif.--(BUSINESS WIRE)--June 27, 2000
Loudcloud, Inc., the leading provider of software infrastructure services for Internet businesses, today announced it has raised $120 million of additional equity funding Equity funding
An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. . The investors in this latest round of financing include Capital Research and Management, Amerindo Investment Advisors, Aurora Technology Aurora Technology is a subsidiary of Shanda, a major Chinese operator of online games. It publishes the MMORPG King of the World. External links
1. Any of various isomeric paraffin hydrocarbons with the formula C8H18, found in petroleum and used as a fuel and solvent.
2. An octane number. Capital Management, Charter Growth Capital, Integral Capital Partners and repeat investors, Benchmark Capital Benchmark Capital is a venture capital firm responsible for the early stage funding of some very successful startups, including eBay. In 1995, the firm invested $6.7 million in eBay, which became worth more than $5 billion by the spring of 1999 and resulted in one of Silicon and Angel Investors.
"The size and quality of Loudcloud's funding clearly signals the market's need for a new category of service provider," said Andy Rachleff, a partner at Benchmark Capital. "It is also clear that Loudcloud is seen as the company that can provide the level and quality of service the market demands of infrastructure service providers."
The $120 million funding round will be used for general operating expenses Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , including the continued geographic and international expansion of Loudcloud's sales and infrastructure services worldwide. Loudcloud has teamed with some of the leading hardware and software manufacturers, data center and network providers including Oracle Corp., Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. Inc., Exodus Inc., EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Corp., and most recently Microsoft Corp.
These alliances all provide crucial components in Loudcloud's infrastructure services, called Smart Cloud(TM) services. Smart Cloud services run all components of an Internet business' application infrastructure, from the physical and network infrastructure through the database and application environments.
"Our customers and partners recognize that having Loudcloud provide a core set of foundation infrastructure services common to all Internet businesses on an outsourced basis is the most efficient way for eBusinesses to grow quickly and reliably," said Ben Horowitz, President and Chief Executive Officer of Loudcloud. "This funding milestone is an exciting validation of our business."
Loudcloud, Inc. was formed in September 1999 to build and run best-of-breed software infrastructure services for high-growth Internet businesses, ASPs, and Fortune 500 companies. Founded by some of the Internet's most respected leaders, including Netscape co-founder Marc Andreessen (person) Marc Andreessen - The man who founded Netscape Communications Corporation in April 1994 with Dr. James H. Clark. Andreessen has been a director since September 1994. and former Netscape/AOL executives Ben Horowitz, Tim Howes Tim Howes is the co-inventor of the Lightweight Directory Access Protocol (LDAP), the Internet standard for accessing directory servers. The main purpose was to handle situations that the X.500 protocol suite could not address.
X. and In Sik Rhee, the company's Smart Cloud(TM) services provide the complete suite of software, hardware, network and operations infrastructure -- including procuring, architecting, and managing these core components -- as a turn-key service. These Smart Cloud services leverage Loudcloud's proprietary Opsware automation technology to deliver unprecedented levels of scalability and reliability for a broad base of customers. For more information on Loudcloud, please visit our Web site at www.loudcloud.com.
Loudcloud, Smart Cloud, and Opsware are service marks and trademarks of Loudcloud, Inc. All other trademarks appearing in this document are the property of their respective owners.