Norwalk, Conn.-based data protection provider Datto has raised a $75 million Series B round led by Technology Crossover Ventures, a VC firm that has invested in Spotify, Vice Media and Dollar Shave Club.
Datto CEO and founder Austin McChord told BostInno that the company is profitable, so it's using the funds—which bring total investment to more than $100 million—to "make big bets in new areas." The company, which employs 80 people in Boston, plans to use the funding to continue international expansion and accelerate product development, he said.
Datto executives declined to disclose the valuation attached to the round, but VentureWire is reporting that the company is now valued at $1 billion.
The company most recently expanded with the opening of an Australia headquarters, but McChord said he couldn't disclose where else Datto plans to expand after that. One of the reasons for international expansion, he said, is because customers want their data hosted within their own borders.
Datto has grown to more than 550 employees worldwide from 330 since it acquired Cambridge-based Backupify last December, and the company is expected to increase its headcount by 25 percent to 30 percent next year. The company's Backupify division recently doubled its office space to more than 15,000 square feet by moving into a new space in Boston.
As a result of the latest fundraise, TCV General Partner Ted Coons will join Datto's board. The company also added two more board members: Patrick Gray, a board director of Civitas Solutions, and Ursula Burns, Chairman and CEO of Xerox Corporation, both of whom will join existing board members, including non-executive chairman Paul Sagan, the former CEO of Akamai Technologies.
“From our first meeting with Datto, we were impressed with the company’s innovation and leadership team, and we knew we wanted to play a role in moving this company forward,” Coons said in a statement. “Cloud-based data protection holds great promise in ensuring information is always accessible and recoverable as more organizations conduct business in the cloud, and Datto has a tremendous opportunity to grow internationally in meeting this need.”
Other investors in the company have included General Catalyst Partners, which led a $25 million round for Datto in 2013.
