April 23, 2010 / 3:22 PM / 9 years ago

Cloud computing startup 3Crowd raises $6.6 million

SAN FRANCISCO (Private Equity Week) - In the more than three years since the term “cloud computing” was coined at the first Cloud Expo, venture capitalists have backed a range of companies that have developed virtualized computing resources to deliver software and information on-demand.

And it appears to be an investment opportunity that is growing.

The Sand Hill Group, a software consulting and angel investment, reported earlier this month that cloud computing represents one of the largest new investment opportunities on the horizon.

In the shadow of the latest Cloud Expo in New York City earlier this week, the latest cloud company to raise financing is 3Crowd Technologies, which raised more than $6.6 million from Canaan Partners and Storm Ventures.

The startup previously raised an undisclosed amount of angel funding from Storm Ventures, Greenwich Technology Associates and individual investors Kevin Rose and Jay Adelson (Adelson recently stepped down as CEO of Digg, replaced by Rose).

3Crowd has developed a product called CrowdDirector, which helps to give enterprises more control over content delivery and cloud services. It lets its users control multiple services at once. The goal, according to Barrett Lyon, CEO of the San Mateo, California-based company, is to ultimately improve the economics of delivering large amounts of data across the Web such as videos and audio.

3Crowd is the latest startup in the space for Lyon, who was previously co-founder at BitGravity, a video platform for delivering videos and live streams.

Of 3Crowd, Lyon said the company is on “a journey which will disrupt and define a new era of Internet data delivery.”

In addition to 3Crowd, other startups that raised capital last week included the following:


AltheaDx Inc.

San Diego, CA


Amount/Round: $6 million/Series A

Investors: Telegraph Hill Partners

Details: Develops companion diagnostics and biopharma services.



San Jose, CA


Amount/Round: $3 million/Series A

Investors: VKR Holding (led), GoGreen Capital and two undisclosed U.S. investors

Details: Develops solar energy systems for the rooftop.


Gemvara Inc. Lexington, MA


Amount/Round: $5.2 million/Series B Investors: Highland Capital Partners (co-led) and Canaan Partners (co-led)

Details: Operates a website to sell custom jewelry. The company previously raised more than $6 million in funding from Highland and Canaan.


Searchandise Commerce Inc.

New York, NY


Amount/Round: $7 million/Series B

Investors: Madrona Venture Group (led), Capital Partners, DFJ Gotham Partners, Draper Associates, Inflection Point Ventures, Milestone Venture Partners and Wheatley Partners

Details: Provides an e-commerce ad platform for manufacturers. The company previously raised $7.5 million in funding.



San Francisco, CA


Amount/Round: $2 million/Series A

Investors: Tugboat Ventures and New Cycle Capital

Details: Operates an online site to help users manage debt. The company has now raised $3.1 million in total funding.


Svelte Medical Systems Inc.

New Providence, NJ


Amount/Round: NA/Series A

Investors: CNF Investments, Apjohn Ventures, Norwich Ventures and the Fischell family

Details: Develops balloon expandable stents for angioplasty procedures. The company previously raised $6 million in financing from CNF Investments and Apjohn Ventures.


Karmasphere Inc.

Los Gatos, CA


Amount/Round: $5 million/Series A

Investors: Hummer Winblad Venture Partners (co-led) and U.S. Venture Partners (co-led)

Details: Develops business analytics software that brings Apache Hadoop to the desktop.


Quirky Inc.

New York, NY


Amount/Round: $6 million/Series A

Investors: RRE Ventures (led), Village Ventures, Contour Venture Partners, Lowercase Capital and individual investors

Details: Develops open source design process. The company has now raised about $10 million.


ServiceMax Inc.

Santa Clara, CA


Amount/Round: $8 million/Series B

Investors: Trinity Ventures (led), Emergence Capital and Salesforce.com

Details: Develops software as a service for field service management solutions. The company has now raised nearly $13 million in funding since 2008.


3Crowd Technologies

San Mateo, CA


Amount/Round: $6.7 million/Series A

Investors: Canaan Partners and Storm Ventures

Details: Provides management tools for cloud-based services. Maha Ibrahim, general partner at Canaan, has joined the board.



Santa Clara, CA


Amount/Round: $8 million/Series A

Investors: Redpoint Ventures and Index Ventures

Details: Develops application-optimization hybrid storage controllers. With the funding, the company has emerged from stealth mode.

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