Fountain Partners Provides $13 Million in Lease Lines of Credit to DigitalOcean
SAN FRANCISCO, April 29, 2014 /PRNewswire-USNewswire/ -- Fountain Partners announced it has provided a total of $13 million in equipment lease lines of credit to DigitalOcean, the world's fastest growing cloud provider. The lease lines are helping DigitalOcean grow its customer base by expanding data centers worldwide, including new centers in Amsterdam and Singapore, as well as their first center in London opening this summer.
Karl Alomar, COO of DigitalOcean, said his company began using an initial $3 million lease line of credit in 2013 -- its first independent line for direct leases -- to increase servers at its U.S. data centers, which were straining to handle 30%-35% month-on-month customer growth. DigitalOcean can add more than 4,000 customer accounts for every $1 million worth of servers.
"More recently, Fountain Partners came in ahead of the pack again and offered another $10 million, becoming our first eight-figure line," he said. Fountain recognized DigitalOcean's need for international capacity with this lease line of credit that included $5 million for overseas expansion.
"We had some international capacity before, but this was the first significant chunk of financing dedicated to international infrastructure. This helped us expand in Amsterdam and launch the Singapore data center this year with confidence," Alomar said.
"Fountain Partners understood the business model and got into the weeds of the business model more so than other financing providers. They had good foresight, business understanding, and they knew the market well. They were able to see the opportunity," Alomar noted. "Fountain Partners was more entrepreneurial in thinking… interested in the direction the company was going rather than just where it was."
DigitalOcean currently has more than 200,000 users, six data centers, and plans for additional centers in cities including London. The company has raised equity capital from IA Ventures and Andreessen Horowitz.
Fountain Partners has become a trusted funding source by specializing in equipment leasing for venture, growth, and expansion-stage businesses. By focusing only on financing fixed assets, the firm can complement any existing debt or equity capital structure and do so without requiring equity rights or blanket liens. For information, call 415-287-9674, email firstname.lastname@example.org or visit www.fountainpartners.com.
SOURCE Fountain Partners