Andreessen Horowitz leads $37.2M investment in high-flyer DigitalOcean


DigitalOcean, to mix a metaphor, is growing like a weed. The New York-based Infrastructure-as-a-Service provider caters to newbies who don’t necessarily know what “spinning up a VM” is, and it has done (ahem) swimmingly with that crowd.

Andreessen Horowitz noticed, and is leading a $37.2 million Series A funding round. IA Ventures, which provided $3.2 million in early seed funding, also participated. The new cash will help the company hire top engineers and keep building out product features and infrastructure to support its growing customer base.

In January, Netcraft called DigitalOcean the world’s fastest growing cloud hosting service and the fifteenth largest overall, at least in terms of number of web-facing computers. The headline there was that DigitalOcean was growing faster than industry leader Amazon Web Services, which is really not a big whoop when you consider how huge AWS already is and that DigitalOcean was growing from a much smaller base.

Still, growth is growth and to keep up with this workload, the company opened a second data center in Amsterdam in December and another in Singapore two months later, bringing its total data center count to six worldwide.

And with growth come growing pains. Earlier this week, the company’s Singapore region experienced massive DDOS attacks, as evidenced by comments on this earlier DigitalOcean story. I guess that comes with the territory.

DigitalOcean team

Feature photo courtesy of Temari 0

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