Cloudsoft growing in $75m market
Cloud company raises £1.5m for expansion
An Edinburgh company gaining a firm foothold in the cloud computing market has raised £1.5 million from the Scottish Loan Fund to help grow its sales and product development teams and expand into the US.
The open source application management company Cloudsoft Corporation has developed a software platform for the cloud computing market which it mainly licenses to blue-chip clients.
It was founded in 2008 by Duncan Johnston-Watt, Alex Heneveld and Derek Gray and has grown steadily in a market expected to be worth over $75 billion by 2017 as companies move their software applications to the cloud to cut costs and improve performance.
Mr Johnston-Watt, chief executive at Cloudsoft, said: “The funding from the Scottish Loan Fund will allow us to capitalise on a successful 2014 and crucially provide the support to grow both our sales and product development teams.”
The Scottish Loan Fund is managed by Glasgow-based Maven Capital Partners and the funding for Cloudsoft is being provided alongside an investment from existing shareholders. David Milroy, Maven’s investment director, said the firm was held in high regard in a fast growing and dynamic market.
“They have a well-defined roadmap for growth and we are delighted the SLF is able to support the business,” he said.
Among the fund’s backers is the Scottish Investment Bank, the investment arm of Scottish Enterprise. Kerry Sharp, Head of the Bank, said Cloudsoft had demonstrated strong credentials with blue chip clients.
The SLF has now committed almost £50m to businesses throughout Scotland.