Cloud back-up company raises $52.5 million

SAN FRANCISCO, USA: Accel Partners and SplitRock Partners have invested $52.5 million in backup software company Code 42, underscoring venture capital's continued fascination with anything related to the burgeoning field of Big Data.

Minneapolis-based Code 42 helps companies manage their information through its data centres and software. It can cope with large amounts of data generated from the continued proliferation of such devices as smartphones and tablets.

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This is Code 42's first funding round. It is best known for Crashplan, a back-up software rival to Carbonite.

Chief Executive Matthew Dornquast said the company will use the cash to develop brand awareness and for international sales and marketing.

Late last year, Accel said it was allocating $100 million to Big Data companies. Partner Ping Li said the firm could expand that amount. "We're less worried about running out of money than finding good companies to invest in," he said. "It's rare to find companies in the Big Data space that have achieved this level of growth."

Dornquast said the company ended 2011 with 86 employees and is profitable, however declined to provide details on revenue and profits.