Cloud Computing Startups Raise Big Money: UPDATE 12

Cloud Computing Startups Raise Big Money: UPDATE 12

This is the thirteenth in a continuing series on startups raising funding. You can read the latest in the series at: Cloud Computing Startups Raise Big Money: UPDATE 11. For previous updates, please click on relevant links in the aforementioned article.  Today, there are two startups in focus – CloudPassage and Opscode.


CloudPassage, a San Francisco-based cloud security startup that advertises its services as “Everything you need to secure your cloud servers,” has raised $14 million in second-round funding, bringing total funds raised to $21 million. The B round was led by Tenaya Capital, with existing investors Benchmark Capital and Musea Ventures also participating.

The startup, whose customer list includes Foursquare, StrongMail, Exois, Avatar New York and Izoox, has experienced subscriber growth of over 70% during the first two months of 2012 as compared with last year. It offers the security and compliance platform Halo, purpose-built for the cloud.

With the cloud quickly gaining traction, we were the first to provide a security platform that allows companies to safely leverage this new computing model. We’ll be extending our leadership in the IaaS security space with innovations that will change how companies look at server security altogether. We’re excited to have the continued backing and expertise of top-tier investors; both Benchmark and Tenaya are well-known leaders who strengthen the company’s ability to refine and execute on our vision,” said Carson Sweet, co-founder and CEO of CloudPassage.

We invested in CloudPassage based on the company’s ability to deliver innovative products that address a large market opportunity. Security has been a key barrier to cloud adoption, and the company’s comprehensive cloud server security platform is well positioned to solve this problem,” said Brian Melton, Managing Director at Tenaya Capital, who will join the CloudPassage board of directors.


Opscode, which promises to help customers rule the cloud” with its open source Chef tool, has raised an additional $19.5 million in Series C funding. The round was led by Ignition Partners with participation from existing investors Battery Ventures and Draper Fisher Jurvetson.

Opscode enables companies to automate their cloud infrastructure. As Opscode CEO Mitch Hill explained, “As we enter the era of cloud computing, it is critical that we solve for the skills and tools gap created by the rapid and unabated proliferation of IT complexity. Opscode Chef bridges that gap by enabling IT with the tools and skills necessary to effectively build and manage next-generation IT infrastructure….It’s an elegant automation platform that can interate and repeat patterns.” The company counts several well-known names like,, LAN Airlines, Marshall University, SolutionSet, and Stella & Dot among its clients.

Ignition’s John Connors, a former Microsoft chief financial officer, will be joining Opscode’s board. “This is an extremely exciting time for Opscode as it creates and leads the infrastructure-automation market during a period of major IT transformation, driven by the rapid adoption of cloud computing and the ‘DevOps’ movement,” he said.

By Sourya Biswas

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