On February 18, Recovery as a Service leader Axcient announced the finalization of $25M in Series E funding in a round led by Industry Ventures with additional participation from existing investors Allegis Capital, Peninsula Ventures, Scale Venture Partners and Thomvest Ventures. The round validates the business model of Axcient’s cloud-based recovery as a service platform as exemplified by 50% year over year growth in customers signed in 2014, Axcient’s acquisition of DirectRestore, more than 30 releases and enhancements to the Axcient business recovery cloud and the release of the second generation of Axcient’s virtual appliance. The $25M in funding will also be used to fund a novel method of compensating channel partners that Axcient will use to enhance distribution of its product. Whereas SaaS solutions have typically struggled to achieve traction in a VAR sales partner model because of low monthly margins for sales professionals, Axcient proposes to offer channel partners up front compensation for the sale of its business recovery cloud solution. Axcient brands the up front compensation model under the acronym SaaS: FLO that stands for SaaS Fully Loaded Option. Axcient’s strategy of expanding its sales pipeline by means of partnerships with VARs under the terms of an innovative compensation model promises to increase its market traction in a landscape that includes the likes of more established cloud-based business continuity brands such as Symantec and EMC. In a phone interview with Cloud Computing Today, Axcient’s Director of Product Marketing Daniel Kuperman noted that although Axcient faces the challenge of educating its VARs about the business and technological benefits of its cloud-based recovery as a service platform, it stands to benefit immensely from the potentialities implicit in introducing the agility and operational simplicity of its platform to a wider range of customers. Assuming Axcient can succeed at training its VAR ecosystem, it stands poised to consolidate on its successes in 2014 and continue to stake out a leadership position in the rapidly growing cloud-based recovery as a service space, particularly because of the richness of its technology for empowering customers to perform granular recoveries of specific files and folders in addition to larger swaths of infrastructure. Wednesday Series E round brings the total capital raised by Axcient to roughly $85M.