RapidScale, a provider of managed cloud services, has closed a follow-up funding round from six of the original angel investors. RapidScale will use the funds to hire cloud sales engineers and regional channel managers, and to launch strategic partnerships with multi-system operators and telecom carriers.
“We have been very impressed with RapidScale’s progress in 2015 and are glad we could participate in this investment round,” said one of the individual angel investors, Jim Patterson, CEO of Patterson Advisory Group and former President of Sprint’s wholesale division. “As RapidScale’s addressable market continues to expand, we wanted to be sure that they had sufficient capital to extend their reach and improve their competitive position. In addition, Kevin Costello’s service on the Board of Directors will provide additional insights and guidance.”
The other individual angel investors include:
- Scott Luttrell, CEO and Chief Investment Officer of LCM Group
- Kevin Costello, former President of Ariba, Inc., an SAP Company
- Marvin Wheeler, former COO of Terremark and current President of Cybraics
- Two additional investors from the private equity industry
“We are excited to partner with this group of investors for the second time in less than three years,” said Randy Jeter, CEO and co-founder of RapidScale. “They have been extremely helpful as we have grown revenues and cash flow. Being backed by this group financially for a second time also speaks volumes to the direction of RapidScale, and the belief they all have in it.”
Over the last three years, RapidScale has averaged 160% annual growth. The company has been able to achieve this level by boosting its cloud channel sales, both retail through Master Agents and wholesale through VARs, MSPs, and SaaS providers. Product innovation would also be a key reason for RapidScale’s recent growth.
RapidScale’s “innovative” solutions include CloudServer, CloudDesktop, CloudOffice, CloudMail, CloudRecovery, CloudApps, and more. The managed cloud services provider was recognized as one of CRN’s 25 Coolest Emerging Vendors and named in its Cloud Partner Program Guide in both 2014 and 2015.