CapX Invests in Start Up Success Digital Ocean
CapX Partners recently closed a $10 million equipment lease to support the financing needs of Digital Ocean, a leading provider of cloud hosting services and one of the startup success stories of the past year.
Digital Ocean’s increase in market share required it to build out its staff, marketing, and IT infrastructure to ensure consistent client servicing while rapidly growing their customer base. Andreessen Horowitz, the Company’s new institutional investor, financed the recent $37 million Series A round highlighting how the need for the virtual server space continues to rapidly increase.
CapX initially invested in Digital Ocean in 2013. They followed this up with this markedly larger equipment lease line to further solidify their role as a trusted finance partner. In the process, CapX developed a strategy that allowed Digital Ocean to draw down incremental tranches of capital to better match the Company’s scaled financing needs. The Lease Line of Credit structure helps Digital Ocean manage its capital efficiently during the new shareholder’s investment period.
Karl Alomar, COO of Digital Ocean remarked, “It has been and continues to be a pleasure working with CapX Partners. CapX is providing a meaningful contribution towards our overall syndicated leasing structure and remains one of our key partners in this regard. We have also recognized great benefit in the value added through the network and introductions made by CapX, as they continue to support our business in any manner in which they are able.”
“CapX was impressed with the company’s product offering, customer growth, and the trend for small business to move IT needs to the cloud. Digital Ocean’s impressive management team and support from its lead investor, Andreessen Horowitz, convinced CapX to step up its financial commitment to the business. We look forward to growing our relationship with both Digital Ocean and Andreessen Horowitz,” stated Peter W. Washington, Vice President, CapX Partners.