We’ve Raised Series D Funding! What Now?

Dan Phillips
Co-founder & Chairman of the Board
Jun. 27, 2017
3 minute read

A little over a year ago, I wrote a blog post reflecting on what Series C funding means to us. Now, thirteen months later, I’m happily writing a follow-up piece to celebrate our Series D round.

In that earlier blog post, I talked about how far this company has come and how the right people, coupled with the right vision, helped us get to where we are today. This time around, I’ll take a different approach, and look to the future.

First, some thoughts on funding rounds, from the perspective of an entrepreneur: Raising capital is a funny thing...you need enough to get you from one stage to the next without cutting yourself short, but not too much so that you detract from future valuation and growth opportunities.

At CloudHealth Technologies, we defined a deliberate path for our fundraising. The goal for our Series A was to enable us to create a strong founding team with a minimal viable product and the opportunity to try and find product market fit. Our Series B objective was to achieve product market fit, gain some customer traction, and have the ability to expand our sales, marketing, and engineering efforts.

In What Series C Means For Us, I acknowledged that we had sustained significant growth, were the leader in our market, and now had the opportunity to remain the leader for the foreseeable future and beyond when the cloud management market achieves exponential growth.

So what does raising a Series D mean to us? The opportunity to make history!

The path to IPO is rarely a straight line. It is not easy and getting there is only half the journey. The real work starts after you’ve gone public. That’s why it’s an elite crowd. How many IT technology software companies in the Boston area can you name off the top of your head that have had an IPO? The few that come to mind, over the last 20 years, are LogMeIn, Rapid7, Carbonite, BladeLogic, PTC, Netscout, and Concord Communications (my personal favorite). And, as an aside, CloudHealth Tech is fortunate to have employees from every one of these companies.

For us, there’s more to the story. Not only are we looking to be part of that elite club, but we are also looking to capitalize on a unique set of market conditions and opportunities that have unfolded with the advent of cloud computing. Not many companies have the opportunity to be the leader in a disruptive market with exponential growth and become the anchor company at the center of the Boston software technology ecosystem for decades to come.

With Kleiner Perkins -- the latest addition to the CloudHealth Tech VC investor team -- leading our Series D, it was validation that the market we address has enormous potential beyond what we see today, and that our strategy and vision was solid. Kleiner Perkins, founded in 1972, invented the VC industry, as we know it. Their portfolio includes giants like Amazon, Google, Twitter, and many more. They are truly a historic and legendary firm that we’re honored to have as our strategic partner and investor.

So, what does raising our Series D really mean to the CloudHealth Tech Team? It’s all about the opportunity to make history and to build a company that brands Boston as the hub of the hybrid cloud management market.