Hosting provider Codero received $8 million in financing from Silicon Valley Bank and Farnam Street Financial, and will use the funds to expand its hybrid hosting product across all of its data center locations.
“We’ve looked at different sources and found debt is a lot less expensive,” said Emil Sayegh, president and CEO of Codero Hostng. “We’ve found a partner in Silicon Valley Bank that completely understands our model. They’re able to help us and fund our growth.”
Travis Wood, managing director for Silicon Valley Bank in Austin, said, “Helping innovators like Codero succeed is what we aim to do every day. With the flexibility provided by this financing, the Codero team is on a path to meet its ambitious global expansion goals.”
The company is operated out of data centers in Phoenix, Ashburn, and Chicago, but its next phase of growth will be in Dallas Forth Worth Area. “We signed on a long term lease, but we can’t say with who yet, only that it’s a state of the art facility,” said Sayegh. “It will be a flagship facility, offering cloud, dedicated and hybrid solutions.” The company is taking down a sizeable chunk of space in the new facility, and there is room to grow."
Codero’s hybrid cloud computing platform allows customers to purchase infrastructure essentially through a "drag and drop" interface and pay for it via a credit card.
Codero's CEO said that their cloud is "completely automated." He noted, "There’s nobody running around the data center running cables. It’s all done natively at the switch." The company has invested substantially in automation technology, hoping that in the long-term the investment will save money.
Codero is making sure all of its data centers are connected with dark fiber, and ultimately wants to extend its hybrid hosting platform to its customers' data centers.
Also, the team is growing, as the company added COO and former Rackspace VP of Operations Robert Autenrieth recently. The former Racker architected the Dallas-Forth Worth expansion. The company just tripled its space at its headquarters in Austin as well.
According to Sayegh, the debt financing comes at a good time, with multiple initiatives and a big push to bring its hybrid hosting platform to all locations.
“Fast-growing companies like Codero need long-term relationships that deliver creative solutions,” said Dale Olsen, SVP of sales, Farnam Street Financial. “We feel that Farnam is uniquely positioned to help Codero maintain its high level of service while accelerating its revenue growth.”