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Huddle raises $51M in Series D

Huddle, the cloud-based work media company, has raised $51 million in a series D round, led by Zouk Capital, with participation from the Hermes GPE Environmental Innovation Fund, and with all existing investors involved, including Matrix Partners, Jafco Ventures, DAG Ventures, and Eden Ventures. Nathan Medlock of Zouk led the raise, and is now a member of the board. This news has been widely reported.

Huddle has grown considerably since I started tracking them a few years ago, and now has 170 employees with offices in San Francisco, Washington DC, New York City, and the UK. Huddle has seen sales to enterprise customers triple in the first three quarters of this year compared to last. Seven of the companies largest ten deals were closed this year, as well. Customers include Grant Thornton, Baker Tilly International, National Grid, P&G, Keolis, Williams Lea, Driscoll’s and Panasonic Europe.

As the Washington DC office indicates, Huddle has been growing quickly in the government sector. I spoke with co-founder and EVP of Strategy Andy McLoughlin of Huddle yesterday about this news, and he shared his perspective on the company’s growth and the increasing interest in government for Huddle. Like the private sector, government agencies are beginning to move away from legacy systems toward more modern tools for internal coordination and communication, and work tech as a service is becoming more common, and lower cost than on premise solutions.

Andy said that the company plans to expand the company’s operations in Western Europe and North America in the coming year, using the funds to push that initiative.

Huddle’s orientation toward integration with other productivity tools — like Word, Office, Sharepoint, and Outlook — where many knowledge workers spend a great deal of their work time, means that user adoption is accelerated. The close integration with Microsoft products has led to some acquisition feelers from Redmond, and others, too. But this round means the company does not have to look for a buyer since the funds allow for that expansion.

I am working on a Roadmap report on work media, to be released in early 2015, and Huddle is one of the featured vendors.