Channel-centric Infrastructure as a Service (IaaS) provider PeakColo has secured a debt facility of $3 million from Square 1 Bank. The funding will support what the company says is explosive demand in its existing markets, as well as provides further working capital for growth into new markets.
PeakColo also closed an additional $1.5 million in follow-on equity funding to the $7.5 million in growth equity capital that was secured in August 2012. This financing will be used to support PeakColo's expansion of its cloud node capacities in existing locations. The follow-on funding was secured from Meritage Funds and Sweetwater Capital, for a total of $9 million in funding to date.
PeakColo offers turnkey infrastructure services including hosted private and public clouds, and white label cloud services. The platform is VMWare vCloud-powered. The company is currently in six geographies across the United States and Europe, including Seattle, Denver, Chicago, New Jersey, New York, and the United Kingdom. More on the PeakColo can be found in an April profile.
"PeakColo has experienced tremendous growth over the past few years, growing 100 percent year over year, with targets to continue the same aggressive growth rate in the years to come," said Luke Norris, CEO and Founder of PeakColo. "Because of the high demand for enterprise class cloud services, we already have existing cloud nodes that require capacity expansions. PeakColo's 100% channel centric model drives us to constantly expand and update our equipment, network, and IT architecture to keep up with the demand from our channel partners. We continue to see existing financial institutions make further investments in PeakColo, which illustrates a true confidence in our business model."
"Square 1 is working closely with us to help support our high growth, capital intensive business along with our innovative technology initiatives," said Sharon Kincl, Vice President of Finance and Administration for PeakColo. "Because of Square 1's extensive experience working with venture capital-backed technology companies, they understand our Infrastructure-as-a-Service business model. Square 1 will be an excellent resource for us as we build out robust environments that can scale quickly and provide storage and network resources for our channel-centric providers and their end-user clients."