HYCU locks in additional funds to grow its cloud data protection business – TechCrunch

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Hybrid Cloud Up Time (HYCU), a self-proclaimed “backup as a service” company for customers managing hybrid and multi-cloud environments, today announced that it has raised $53 million in a “majority equity” Series B funding round led by Acrew Capital with participation from Bain Capital Ventures, Atlassian Ventures and Cisco Investments. In an email interview with TechCrunch, CEO Simon Taylor said the proceeds will be used to expand HYCU’s 300-person team with a particular focus on customer success and partnerships as well as financing the development of new products and services, including software as a service product.

HYCU is spun off from Comtrade Software, an IT solutions company based in Belgrade, Serbia, with offices in Dublin, Amsterdam and Ljubljana. Comtrade, after selling the intellectual property of the data surveillance software it created for Citrix and Microsoft, realized it could develop and sell data protection products through its own channels. The company decided to establish HYCU while maintaining majority ownership and focusing on integration and outsourcing.

In 2018, Taylor was named CEO of HYCU (pronounced “haiku”), which is based in Boston – where Comtrade Software has a fourth outpost.

“HYCU is…focused on data resiliency,” Taylor said. “The emerging threat of the data explosion is too big to take risks. Additionally, the emergence of multi-cloud and hybrid cloud, where enterprises are migrating more workloads and applications from on-premises cloud to public cloud, is accelerating at an unprecedented rate. Finally, the number of data silos within companies is also increasing. All of these reasons explain why our current and new investors are working with HYCU to address these challenges. »

HYCU offers software designed to protect data in multi-cloud and hybrid cloud environments. While “multi-cloud” and “hybrid cloud” both refer to deployments with more than one cloud, they differ in the types of infrastructure involved. A hybrid cloud combines two or more different types of clouds (for example, an on-premises data center and a public cloud like Amazon Web Services), while a multi-cloud combines different clouds of the same type (for example, Amazon Web Services and Google Cloud Platform).

Specifically, HYCU sells products – mostly self-service – for cloud migration, security credential management, disaster recovery, backup and recovery. Taylor sees the company’s offerings as competitive with legacy data protection vendors with roots in mainframes, application-based data protection and management companies, and cloud-native “backup and recovery” vendors. as a service »

“HYCU has experienced much of its growth during the pandemic. Much of this was driven by the need to simplify the ransomware recovery experience,” Taylor said. “The pandemic has also seen the fastest increase in the use of multi-cloud systems. Many data protection solutions were developed before public clouds existed, and people began to realize the responsibility of protecting cloud data.

There is certainly no shortage of competition in the data backup and recovery industry. In our coverage of HYCU’s A-series, my colleague, Ingrid Lunden, noted three main rivals: Rubrik, Veeam, Veritas and CommVault. Veeam was acquired by Insight in 2020 for $5 billion. At the start of 2019, Rubrik was valued at $3.3 billion.

In 2019, IDC estimated that the data replication and protection software market was worth $9.4 billion. It has almost certainly grown since then. More than 80% of companies responding to Flexera’s latest State of the Cloud survey said they have a multi-cloud or hybrid cloud strategy.

Gartner predicted in a 2020 report that global spending on information security and risk management technologies and services would reach $150.4 billion in 2021, in part due to high-profile ransomware attacks. At the same time, the analytics firm forecast spending on public cloud services to climb to $304.9 billion from $257.5 billion in 2020.

HYCU claims to be in a strong position for expansion, with a customer base of more than 3,100 organizations, including US state and local government agencies, the US Department of Defense and “multiple” branches of the US military. In anticipation of wooing future public sector customers, perhaps, HYCU recently announced support for AWS GovCloud, Amazon’s cloud regions designed to host sensitive data and regulated workloads.

“Wherever the need for cost-effective multi-cloud data protection as a service exists, we meet those needs,” Taylor said. “HYCU is positioned to continue to thrive. We were approached to launch a Series B and were able to do so at a time when many tech companies were challenged to raise funds. Data protection is a need that will always be present, especially as more data is created.

To date, HYCU has raised $140 million.

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