“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 network and introductions made by CapX, as they continue to support our business in any manner in which they are able.”
Karl Alomar, COO, Digital Ocean
Digital Ocean, a leading provider of cloud hosting services for IT developers, is one of the startup success stories of the past year. As the Company continues its expansion phase, adding customers at a rapid pace, they also launched their fastest and most convenient service allowing developers to manage their infrastructure with increased ease and efficiency.
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 Series A round. CapX followed up an initial 2013 investment with a markedly larger equipment lease line to further solidify their role as a trusted finance partner.
THE CAPX SOLUTION
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.
“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.”
- Peter W. Washington, Vice President, CapX Partners