Business is booming for companies like DigitalOcean as the popularity for cloud computing grows.
On Thursday, DigitalOcean announced the closing of its $50 million Series C funding round, which comes less than three months after the company secured $300 million in debt financing. This new influx of cash helped the company achieve unicorn status with an equity valuation of $1.15 billion.
DigitalOcean has created a platform to make it easier for developers to build cloud-based web and mobile applications. The platform also makes it easy to deploy these applications, and then scale them as they grow.
Over 500,000 businesses use DigitalOcean to aid their cloud development; this includes well-known tech companies like Slack, Splunk, WeWork and more. DigitalOcean brings in $300 million in annual recurring revenue.
“We are delighted to extend our partnership with Access and a16z and see this capital as adding strength to our balance sheet enabling us to better serve our customers’ demand for our platform, especially during COVID-19 where we are seeing an acceleration of businesses transitioning to the cloud,” CEO Yancey Spruill said in a statement. “We are now freed up to focus on accelerating revenue growth, transitioning to free cash flow profitability in 2020 and positioning our company ultimately to be a public company.”
This new funding will help DigitalOcean accelerate its growth goals for the future as it sees increased demand. The company is currently hiring, adding new customers and building additional data centers. It recently built its 13th data center, which is located in San Francisco.