Venrock and NEA lead $21m funding round for US cloud company


cloudVenture capital firms New Enterprise Associates (NEA) and Venrock have led a $21m funding round for VeloCloud Networks.

Incubator firm The Fabric also contributed to the investment pot, which VeloCloud said it will use for simplifying and reducing the costs of wide area networks to enhance the use of apps on the cloud.

VeloCloud said its goal is to deliver virtualised services from the cloud to offices and mobiles, “combining the economy of the internet with the flexibility of the cloud”.

The Fabric’s Rajan Raghavan said, “We share a common vision with VeloCloud, of enabling direct access to any application, whether on-premises or in the cloud at significantly lower costs, without compromising performance, visibility and control. We want IT managers to have their cake and eat it too.”

Venrock venture investor Doug Dooley noted VeloCloud’s “elegant new approach”.

He said, “A savvy team that is focused on executing a vision. These are the tenets of a great startup and that’s what we see in VeloCloud.”

Dooley joined Venrock one month ago from computer data storage vendor Coraid, with a view to focusing on cloud-centric software and infrastructure technologies.

It is not the first time NEA has invested in cloud technology. The venture capital firm was among participants in a $50m financing round for cloud software developer Opower in 2010. The software startup raised $116m at a New York IPO in April this year.

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