Datto has raised $75 million in a Series B investment round led by Technology Crossover Ventures (TCV), a leading provider of capital to growth-stage private and public companies in the technology industry. The company will use the proceeds from the investment round to continue to invest in its global expansion and to accelerate product innovation to support its thousands of partners worldwide. The Series B brings total investments in Datto to just over $100 million.
“Today is a great day for our managed service provider partners and customers,” said Datto founder and CEO Austin McChord. “Datto is proud to be adding TCV as an investment partner. TCV brings a wealth of experience and expertise to help us continue to grow, innovate and expand globally.”
“As a profitable company, Datto isn’t raising capital to fund operations, but instead, to enter new markets and build new products and technology,” McChord continued. “With this new investment, Datto is excited to be pushing ahead to build new technology and improve the experience for our MSPs and end users around the world.”
The financing comes as Datto is achieving record year-over-year revenue growth, rapidly expanding into EMEA and APAC, and launching additional solutions for its extensive partner network and customer base. Datto manages more than 160 petabytes of data and more than one million backups a week for its customers. Datto’s Total Data Protection Platform protects customers’ business data no matter where it lives - on premises, in virtual or physical servers, or in cloud-based SaaS applications.
“From our first meeting with Datto, we were impressed with the company’s innovation and leadership team, and we knew we wanted to play a role in moving this company forward,” said Ted Coons, general partner at TCV and new Datto board member. “Cloud-based data protection holds great promise in ensuring information is always accessible and recoverable as more organizations conduct business in the cloud, and Datto has a tremendous opportunity to grow internationally in meeting this need.”
In addition to Coons joining Datto’s board of directors, Datto also added two board additional members: Patrick Gray, a board director of Civitas Solutions, Inc.; and Ursula Burns, Chairman and CEO of Xerox Corporation. They are joining a board that includes McChord; non-executive Chairman Paul Sagan, the former CEO of Akamai Technologies; and Steve Herrod, former CTO of VMware and currently a Managing Director of General Catalyst Partners, which led Datto’s Series A financing.
Coons has nearly two decades of experience investing in multiple technology sectors, with a deep focus on IT infrastructure. Gray has served on the board of Sancilio Pharmaceuticals since February 2012, and on the board of Civitas since September 2014, after nearly four decades with PricewaterhouseCoopers. Burns has served as Xerox’s CEO since 2009, following her success in other prominent leadership positions for the company. Burns is also a member of the board of directors of American Express Company and Exxon Mobil Corporation.
