San Francisco-based AppDirect, which helps users manage their cloud-based software and services, has raised $8.5 million in Series A funding from existing investors iNovia Capital and Stingray Digital. The firms invested $3.25 million in seed stage funding in May 2011, bringing the company’s total capital raised to $11.75 million.
AppDirect says it will use the latest funding to expand its marketplaces worldwide.
AppDirect Secures $8.5M to Expand Global Network of Application Marketplaces
Funding from iNovia Capital Caps Year of Explosive Growth, Sets Stage for Continued Success
San Francisco, CA, July 18, 2012 — AppDirect, the leading cloud service marketplace company, announced today that it has secured $8.5 million in expansion capital from existing investors, including iNovia Capital. The financing, which serves as AppDirect’s Series A round, will be used to fund the company’s growth as it launches a rapidly increasing number of partner marketplaces around the globe and secures its position as a leader in the cloud services brokerage sector.
“Since our initial investment in AppDirect, the market for cloud services has changed considerably. Today, more people are using more cloud-based applications than ever before,” said Chris Arsenault, Managing Partner at iNovia Capital. “With its outstanding technology and high-caliber team, AppDirect is perfectly positioned to not only take advantage of that growth, but act as a catalyst to expand the market even more. With this investment, we’re excited to renew our commitment to AppDirect at such an important time in the company’s development.”
The funding announcement comes just over a year after AppDirect raised $3.25 million in seed funding. Since then, the company has experienced tremendous growth, securing numerous partnerships with global brands—including European telecommunications giant Deutsche Telekom and hosting and cloud services provider Rackspace—to launch cloud service marketplaces that reach more than six million end users worldwide. In addition, the company has added dozens of high-profile applications to its syndication network, including Google Apps, DocuSign, New Relic, and SendGrid.
“When we founded AppDirect, our mission was to change the way that businesses find, buy, and manage cloud-based software, and I’m proud of the progress we’ve made in such a short time. But, we’re just getting started,” said Daniel Saks, President and Co-CEO of AppDirect. “This funding not only validates all of the hard work we’ve put into the platform, but also helps us continue to innovate on our products in new and exciting ways to make them even better.”
As Saks points out, the funding also sets the stage for a number of initiatives in the coming year. “We’re going to have a lot of exciting news to announce over the next few months, from developer engagement activities to new partnerships,” he says. “This funding announcement is just the first in a long string of successes to come.”
AppDirect offers an industry-leading cloud service marketplace and management platform that powers a global network of branded application stores. Service providers can use the white-label AppDirect platform to broker cloud services and launch a robust, fully branded marketplace within weeks. Developers can use the AppDirect platform to integrate once and make their software available across multiple partner marketplaces around the world, while end users gain access to the best, most innovative business applications and services the cloud has to offer.
AppDirect is the leading cloud service marketplace company dedicated to revolutionizing the way businesses run. Its award-winning platform connects businesses, brands, and developers through a global network of partner marketplaces. Based in San Francisco, AppDirect powers the marketplaces of trusted companies around the globe—including Deutsche Telekom, Rackspace, Bell Canada, Appcelerator, and more—and has helped millions of businesses discover, buy, and manage the best cloud-based software and services.
About iNovia Capital
iNovia partners with exceptional entrepreneurs to build successful companies in high growth sectors. The team is comprised of entrepreneurs and sector experts focused on Mobile, Internet and Digital Media. iNovia has $275M under management across three seed and early stage funds. For more information, visit http://www.inovia.vc or follow iNovia on Twitter at http://www.twitter.com/iNovia