VMTurbo said Wednesday that it has added $50 million in new funding following a year of strong growth in 2014.
Update: I've learned that the round gives Boston-based VMTurbo a valuation of $500 million.
VMTurbo offers software for bringing automated control to virtualized data centers, solving some of the major headaches of adopting the cloud and virtualization. The company said in its news release that revenue more than doubled last year (128 percent growth) compared to 2013; that suggests revenue was in the range of $32 million for 2014, since VMTurbo had generated more than $14 million in sales the year before. The company also said it now employs more than 250.
The round was led by ICONIQ Capital, a Silicon Valley firm with ties to Mark Zuckerberg.
The new funding round was led by ICONIQ Capital, a little-known Silicon Valley fund that has close ties to Mark Zuckerberg and Sheryl Sandberg of Facebook along with LinkedIn co-founder Reid Hoffman. A Forbes article describes the fund's brand as startup investments that are approved by "Zuck & Friends."
Three Boston-area VC firms who have been previous backers for VMTurbo—Bain Capital Ventures, Globespan Capital Partners and Highland Capital Partners—also took part in the new financing.
VMTurbo has now raised $75 million since its founding in 2009, placing it among the best-funded privately held companies in the Boston-area tech industry.
The new funding follows VMTurbo's move from the suburbs (Burlington) to Boston's Back Bay last year and its appointment of a well-known local venture capitalist, Ben Nye of Bain Capital Ventures, as CEO in the fall of 2013. Nye had previously led Bain Capital Ventures' investment into VMTurbo.
The funding is the first for VMTurbo since the company's $7.5 million Series C round in May 2013 under the previous CEO, Lou Shipley, who now heads Black Duck Software of Burlington.
