DigitalOcean Raises $130M In Credit Facility Financing

This week, DigitalOcean announced the finalization of $130M in credit facility funding for its IaaS platform that targets developers and startups. The company will use the financing to fund its explosive growth, global expansion and product development. KeyBanc Capital Markets Inc. led the financing in collaboration with Barclays Bank PLC, Pacific Western Bank, East West Bank, Opus Bank, Webster Bank and HSBC Bank USA. The $130M in credit facility adds to DigitalOcean’s $83M in Series B funding from June 2015 and positions it strongly to scale in response to customer demand as well design and deploy new product innovations. The huge advantage of credit facility funding is that DigitalOcean need not give away equity as a result of the funding raise. The $130M in financing illustrates DigitalOcean’s attractiveness to developers and correspondingly illustrates the multi-dimensionality of the market for IaaS services, which clearly contains a layer different from the battle for enterprise market share that features the likes of Amazon Web Services, Microsoft, Google Cloud Platform and Rackspace.

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