Fulton, Md.-based RackTop Systems has secured a $750,000 raise and will shortly secure another $750,000, CEO and co-founder Eric Bednash confirmed to DC Inno. Founded in 2010, RackTop is a developer of foundational IT appliances, focused on designing valuable, easy to use and affordable cloud storage solutions for businesses and organizations. Its platform is designed to be customer responsive, with real-time alerting and a highly specific operational focus.
“Our current round of funding gives us the boost we need to put our marketing and product development strategy into high gear. We’re on solid ground financially and continue to add new customers. Our plan right now calls for a large institutional round of growth funding in Q1 2016. We’re planning to be a 40-member team by year's end,” Bednash told DC Inno.
In the past, market products have only dealt with the storing of data. The company differentiates itself from others by combining multiple, usually individualized products — such as automatic data backups, data reproduction options, real-time analytics and an individualized security system. The idea is provide a one-stop-shop for customer’s who want to take advantage of cloud storage options. RackTop offers data integrity and security solutions through multi-layered encryption.
Bednash added: “RackTop is entering the next phase of growth. We’ve recently taken on some bridge investment to boost our sales and marketing teams. We have a vision for effortless data storage and management, and we make that possible through our Data Ecosystem. The concept for what we’re doing is somewhat disruptive. Our mission is to educate the world on what the Data Ecosystem is, and how it solves the biggest challenges CXOs face with the growing complexity of data storage, protection, and management.”
The funding will be used to hire a mix of sales, marketing, and engineering staff during Q2. Ten current opening positions will be filled, immediately, while the company also plans to add another five or six engineers in Q3.
On Feb. 20, RackTop Systems disclosed it had raised $750,000 in new equity funding, in a round with a total offering amount of $2 million. Given the soon to be doubled $750,000 investment, that target seems on course to be fulfilled. Bednash declined to comment on details regarding the firms/investors involved in the deal.
“Sales and growth has been strong, so a big financial round may not yet be necessary,” Bednash said. "We see this as a bridge, lining us up for a larger Series A at the beginning of next year.” RackTop is currently in negotiations with several undisclosed growth-stage VC firms regarding a larger round.
Because the platform is personalized and specific to its clientele, RackTop does not incorporate a "public" cloud. Which is to say that customers own a piece of it but it is, nonetheless, private in the sense that new users cannot access it over the net with the use of a credit card or other payment system. As time progresses, more and more businesses — especially given the financial impact of cyberthreats — will shift toward a private cloud ecosystems and away from today’s more public norm.
As 2015 rolls on, the company will look to expand on the growth it has experienced by marketing its services to new clients and by securing several talented hires.
“Any bootstrapped company has a bit of a chip on its shoulder. You are an underdog. You have to get up every day and fight for your dinner. Some people don’t know what that’s like. I think we’re a stronger and smarter company because of it.”
