Monday, June 29, 2009

$8 Million More of 'Under the Mattress' Money for CloudSwitch

Here's an item that'll spark some jealousy in any entrepreneur who finds it tough raising venture capital in the current climate: CloudSwitch has raised a second round of $8 million in venture capital funding, led by new investor Commonwealth Capital Ventures. This follows a first round of $7.4 million that was first reported here on Innovation Economy in January.

I spoke to founder and VP/products Ellen Rubin late on Friday, as the company was moving into new office space in Burlington. (The funding news was under embargo until this morning.) The company now has 18 people, including new CEO John McEleney (formerly CEO at SolidWorks), co-founder and CTO John Considine (formerly of Sun and Pirus), chief architect Fred Oliveira (who formerly worked on EMC's Atmos cloud offering), VP of product management George Moberly (ex of EMC and BladeLogic), and VP of engineering Sean Henry (formerly of RSA.)

"We weren't really actively looking for money," Rubin said. "But there was a fair amount of pre-emptive interest at attractive valuations. Having John McEleney join was the catalyst. He's pretty well-regarded, and had a phenomenal track record at SolidWorks. He knew the Atlas and Matrix guys [who led CloudSwitch's first round], and has known the guys at Commonwealth for a long time." Eliot Katzman is the partner at Commonwealth who will join CloudSwitch's board; Matrix and Atlas participated in the new round. CloudSwitch's objective is to help make the low costs and flexibility of cloud computing services safe for enterprise use.

"This is one of those funny situations," Rubin told me. "We'd just raised the A, and we weren't going to be looking for more money until well into 2010. This is just money to have, so we can focus on getting the product out the door. You just put it in the bank and let it sit there."

Nice situation to be in...

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