Local Software Firm Lands $52.5M Investment
A local software firm has landed what is believed to be one of the largest venture capital deals for an information technology company in Minnesota's history.
Code 42 Software, Inc., on Wednesday announced that it has secured $52.5 million in venture funding. The Minneapolis-based company provides backup software and data storage to corporate customers.
The financing comes from Palo Alto, California-based Accel Partners and Eden Prairie-based Split Rock Partners.
Code 42 co-founder and CEO Matthew Dornquast said in a statement that the rapid growth of mobile devices and cloud services presented a major opportunity for his company's CrashPlan suite of products, which provide real-time data management and protection.
The company's enterprise backup solution, CrashPlan PROe, is currently used by more than 4,000 customers, including technology giants Adobe, Google, and Hewlett Packard, the company said. Code 42 plans to use the funding to accelerate product development and increase its global market share by expanding sales and marketing efforts.
Code 42's recent financing round is reportedly among the largest venture capital deals in the state's history. A report by the Pioneer Press points out that there have been larger deals backing local medical technology companies, but Code 42's deal “appears to dwarf other information technology rounds.” The St. Paul newspaper also reported that Code 42 intends to use its new funding to expand from 86 employees to 150 by the end of this year.
“Code 42's financing is the largest venture round in a private Minnesota-based software company,” Split Rock Ventures Managing Director Michael Gorman said in a statement. “By any measure, Code 42's venture round is a seismic event in the Minnesota tech landscape and is further evidence that technological innovation is alive and well in Minnesota.”
Gorman, along with Accel Partners investor Ping Li, will join Code 42's board of directors.