Data-center company IO wins $90 million in venture cash
SAN FRANCISCO, Oct 10 (Reuters) - Data-center company IO has raised $90 million from venture-capital backers, the company said on Wednesday, illustrating the growing profile of enterprise-oriented investments compared to consumer companies in Silicon Valley.
The investment, led by the Pritzker Group's New World Ventures, will allow IO to expand to Singapore and London, IO Chief Financial officer Jon Mauck said by telephone.
The company's business is about half hosting infrastructure and half product sales, with a large portion of revenue coming from recurring subscriptions, Mauck said. Much of IO's business, such as building data centers, is currently done in-house by the companies that become its customers.
"For a company of our size and scale, there's a natural roadmap to an IPO," or initial public offering, Mauck said. "We're at a scale now where we could easily be in the public markets in the course of the next year." He declined to provide revenue figures.
Until social-media company Facebook's troubled IPO earlier this year, consumer-Internet companies rode high in Silicon Valley.
But lately, more buzz has surrounded companies that cater to businesses rather than consumers.
Data-mining company Splunk , which priced at $17 at the time of its April IPO, is trading north of $30. Software company Workday, expected to start trading on Friday, has raised the price range for its shares to $21-$24 each, which could raise its valuation to more than $4 billion.
IO's current investors include JP Morgan Asset Management and Sterling Partners. The company has raised $275 million in equity financing and has access to $200 million in debt financing.
(Reporting By Sarah McBride; Editing by Tim Dobbyn)
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Keywords: VENTURE NEWWORLD/