Carbonite Secured $20 Million in Mezzanine Financing

Carbonite, Inc., provider of online backup, has closed a mezzanine round of funding that provides approximately $20 million of new capital. This brings the total financing raised by the Boston-based company to approximately $67 million. While the company does not disclose specific terms, the valuation of the mezzanine round is a major step up from previous rounds.

Crosslink Capital of San Francisco led this round with participation from all existing investors, including Menlo Ventures, Performance Equity, and Common Angels Fund. Gary Hromadko, venture partner at Crosslink, will join the Carbonite board of directors.

"We’re focused on delivering the best online backup service in the world," said Carbonite CEO and Co-founder David Friend. "This investment enhances our ability to continue to lead innovation here in the US and to expand our offerings to new foreign markets."

Carbonite launched its online backup service for PC owners in 2006. In the last year, Carbonite expanded its product offering to include a Macintosh solution and Remote File Access, which enables any Carbonite user to access backed up files from any web browser. Additionally, the company has forged distribution agreements with Seagate and Sun Microsystems.

"Carbonite is the leading independent vendor in a market with enormous potential," said Hromadko. "The management team has experience and depth, has executed on its business model and delivered excellent results each year since the founding of the company. Almost anyone in the world with a computer and a broadband connection needs a service like Carbonite. The mezzanine round that we led will help the company to accelerate its growth in the US, expand into new markets, and introduce new products. Carbonite certainly didn’t need to raise more cash at this point, but this is the kind of business and management team that Crosslink likes to be involved with, so we were very pleased to be able to make the investment."

Since 2006, the company has backed up more than 39 billion files and has restored more than 3.2 billion lost files for its customers. Carbonite backs up more than 100 million files every day to high-redundancy storage servers in its Boston and Somerville, Mass. data centers.