San Francisco-based AppDirect Inc., a cloud service marketplace company, has raised US$9 million in Series B funding. The round was led by Canadian venture capital firm iNovia Capital, which has invested in AppDirect since 2012. The company’s other investors include Stingray Digital Group, a Montréal-based provider of multiplatform music services that is backed by Novacap and Telesystem. Concurrent with the funding news, AppDirect announced its buy of Boulder, Colorado-based Standing Cloud Inc., a provider of cloud management services backed by Foundry Group.
AppDirect Acquires Standing Cloud and Secures $9M in Series B Funding Round
Acquisition and Funding Position AppDirect as the Most Complete Cloud Marketplace and Management Solution Available
SAN FRANCISCO, CA–(Marketwired – Sep 10, 2013) – AppDirect, the leading cloud service marketplace company, announced today that it has acquired Standing Cloud, a leading provider of cloud management services, such as automated software packaging and orchestration that enable fast, seamless application deployment and management. Together, AppDirect and Standing Cloud provide an unparalleled cloud marketplace and management solution that offers more features and functionalities than any other competitor, technology that can be used by almost any provider for any type of use case, from public app marketplaces to internal enterprise application stores.
“Both AppDirect and Standing Cloud have worked to develop technologies that make the cloud easier to use. With this acquisition, we can join forces to accelerate the speed of innovation and move faster than ever before,” said Daniel Saks, president and co-CEO of AppDirect. “We’re thrilled to work with a team that’s as excited about cloud services technology as we are.”
Leslie Osborne, VP of Product and Operations at Standing Cloud, added: “From day one, we’ve been impressed with AppDirect’s technology and the passion of its team. AppDirect clearly shares our vision for making cloud technologies more accessible and easier to use, and we’re looking forward to all of the great things we can achieve together.”
Founded in 2009, Standing Cloud has deployed services with a range of cloud partners, including Amazon, Rackspace, Savvis, IBM, and others. Its catalog of integrated software features more than 100 applications, including Drupal, Magento, SugarCRM, and WordPress. The company has received $10 million in funding, completing its Series B round in late 2010. Standing Cloud is located in Boulder, Colorado, where the team will continue to be based.
As part of the acquisition, AppDirect will become part of the Foundry Group portfolio of companies. Headed by industry veteran Brad Feld, the Foundry Group has invested in Zynga, SendGrid, CloudAbility, and Standing Cloud, among many others. “At the Foundry Group, we’ve made it a point to invest in companies that drive long-term cycles of innovation. AppDirect fits that vision to a tee,” said Feld.
Concurrent to the acquisition, AppDirect has also closed its Series B round of funding, securing $9 million from existing investors. Lead by iNovia Capital, the company’s Series B will enable AppDirect to continue its rapid, aggressive growth and capture more of the expanding global cloud computing market, a sector predicted to grow to $241 billion by 2020. In addition, former Director at McKinsey & Company, Tsun-Yan Hsieh, is now serving as a special advisor to AppDirect. Hsieh is a business leader with extensive experience in international business and leadership. Currently, he serves as a board member of Sony Corporation and Bharti Airtel Limited.
“iNovia doubled up on AppDirect because the team can execute, it’s as simple as that,” said Chris Arsenault, Managing Partner at iNovia Capital. “And now, with the Standing Cloud acquisition, AppDirect will accelerate its already amazing growth and cloud service marketplace leadership.”
Recently named to JMP Securities “Hot 100 Software Companies” list and the CRN Cloud 100 — alongside Citrix, Oracle, and Google — AppDirect powers the marketplaces of some of the largest service providers in the world, including Staples, Deutsche Telekom, TeliaSonera, Swisscom, and Rackspace. These marketplaces enable SaaS products from leading providers such as Microsoft, McAfee, Carbonite, WebEx, and more to reach almost 12 million end users in 80 countries worldwide.
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 Staples, Deutsche Telekom,
TeliaSonera, Rackspace, Swisscom, Appcelerator, and more — and has helped millions of businesses discover, buy, and manage the best cloud-based software and services.
iNovia Capital partners with exceptional entrepreneurs to build successful companies in high-growth sectors. The team is comprised of founders, builders and engineers that are passionate about building market-leading technology companies. iNovia has $275M under management across three seed and early-stage funds. For more information, visit www.iNovia.vc (Twitter: @iNovia).
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