February 27th, 2012
There is nothing special about small companies or startups getting funding, other than the obvious vindication of the opportunities in cloud computing. In fact, such funding stories have been the focus of several articles here (See the latest one: Cloud Computing Startups Raise Big Money: UPDATE 8). However, there’s something different, and in my opinion, special, about the $85 million round of funding closed by San Francisco cloud services provider Joyent (http://www.joyent.com/). What’s special about this round of external financing is not the amount (which, by prevailing standards, is quite impressive) or the fact that Joyent had raised $25 million earlier. What differentiates this event from others of its ilk is the involvement of a client – Telefónica Digital, the growth arm of global telecom giant Telefónica, the third-largest in the world. In my opinion, when a client has enough confidence in a young company (Joyent is seven years old) to put its money not only in a business relationship but also in the growth story, it speaks volumes about the company’s and its management’s capabilities.