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Cloud Computing Startups Raise Big Money: UPDATE 4

Cloud Computing Startups Raise Big Money: UPDATE 4

This is the fifth in a continuing series on startups raising funding.

Today, there are two startups in focus – Puppet Labs and Twilio.

Puppet Labs (

If big name investors are a sign of startup street cred, then Oregon-based Puppet Labs has it in spades. It recently announced the closing of Series C financing in which Cisco, Google and VMware joined hands with existing investors Kleiner Perkins, True Ventures and Radar Partners to put in $8.5 million; this round raised the total funds raised by the startup to $15.75 million.

The participation of these new investors in this latest round reinforces our lead in providing powerful IT automation tools for system administrators, whether deploying applications on-premise or in the cloud. Together, we are well-positioned to enable IT organizations to fully capitalize on the tectonic shifts of virtualization and cloud computing in their delivery of business results,” said Luke Kanies, CEO of Puppet Labs.

The company provides automation tools to make life easier for system administrators, and boasts of an impressive client list that includes Zynga, Twitter, NYSE, Disney, Citrix, Oracle/Sun,, Los Alamos National Laboratory and Stanford University.

Global companies need efficient solutions to manage their on-premise and cloud infrastructures. The Puppet Labs team has demonstrated the market traction and leadership to capitalize on this tremendous opportunity, and we’re looking forward to working with them to grow the business,” said Karim Faris, partner at Google Ventures.

Twilio (

On the subject of Series C funding, here’s another one that announced the arrival of big bucks. Cloud communications startup Twilio announced that it had raised $17 million from Bessemer Venture Partners and Union Square Ventures, both of whom have invested earlier in the San Francisco-based company. The funds will be used for future expansion and ramping up the workforce.

Twilio provides developers the tools to include SMS, voice, and VoIP functionality into their apps and have several recent successes to its credit, including Beluga (acquired by Facebook) and GroupMe (acquired by Skype, itself under Microsoft ownership). Its client list also includes big names like eBay, Salesforce, Hulu, Intuit and LinkedIn.

At Twilio, we’re opening the black box of telecom to developers and companies that can now innovate in this previously esoteric field. With this new round of funding, we look forward to expanding that mission,” said Jeff Lawson, CEO and co-founder of Twilio.

We have had the privilege of working with Twilio for three years, beginning with our initial investment in their seed round in early 2009,” said Byron Deeter, partner at Bessemer Venture Partners and board member of Twilio. “Jeff and his exceptional team have exceeded our expectations, grabbing the hearts and minds of over 75,000 developers and creating thousands of new products and companies in the process. We look forward to watching them continue to take market share in the exciting and massive telephony applications market.

By Sourya Biswas


Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years...

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