Cloud Computing Startups Raise Big Money: UPDATE 9
This is the tenth in a continuing series on startups raising funding. The series continued…Read the previous post/s
Today, there are two startups in focus – Nivio and Clio.
Palo Alto, California-based cloud startup Nivio recently announced the raising of $21 million from Indian consumer products giant Videocon and American private equity firm AEC Partners. While AEC Partners has a record of tech investing, this is the first such move by Videocon. In addition to the potential of this company founded in 2004, there’s a family connection at play – Saurabh Dhoot, one of Nivio’s founders, is a nephew of Videocon chairman Venugopal Dhoot, one of the richest men in India with a personal fortune of $2 billion.
This round of funding values Nivio at $100 million, which in the words of co-founder Sachin Duggal, delivers “seven-fold returns to some of the angel investors.” The two co-founders were classmates at Imperial College, London, when they decided to launch their own venture. According to him, Nivio has been working on cloud computing for the past seven and half years. Its three offerings – nDrive, nDesktop, and nApps – are available in several different packages aimed at students, educators, and small businesses. The company provides cloud storage and syncing services through its nDrive, besides allowing the rent of programs through nApps. It has the stated aim of moving the desktop to the cloud.
Vancouver-headquartered cloud-based legal software company Clio recently announced the completion of a $6 million Series B funding round. Acton Capital Partners, a Munich-based growth equity fund and Point Nine Capital, an early-stage VC firm based in Berlin, participated in the round. The company plans to use the money to extend its product line and expand its footprint beyond the US which accounts for 95% of its revenue. Clio’s products allow its clients to track cases, bill clients, manage accounts, synchronize schedules and collaborate remotely, among other things.
Clio has a large target audience in mind – the 80% of the law firm market that consists of solo practitioners or small firms with limited IT budgets. This figure is according to the American Bar Association and blows away the common misconception that most lawyers are part of huge legal firms.
“With few support staff and no IT departments, these professionals are often overwhelmed by the administrative side of their business. Clio is designed specifically for these lawyers. By moving their practice management to the cloud, we give these lawyers tools to manage their practices and build client relationships that are both more secure and more collaborative,” said Clio Founder and CEO Jack Newton.
“The legal space is ripe for disruption. Although this industry has traditionally been regarded as slow to adopt technological changes, recent investments show it’s now ready to benefit from technological innovations like cloud computing,” said Boris Wetz of Acton Partners who will join Clio’s board as part of the deal.
By Sourya Biswas