Quorum With $11 Million Round Led by Vinny Smith, Former CEO of Quest Software

Quorum, Inc., provider of one-click backup, recovery and continuity for SMBs, raised $11 million in Series B funding.

The round was led by new investor Toba Capital (formed by Vinny Smith, former CEO of Quest Software, which was acquired by Dell in September 2012 for $2.4 billion), and joined by prior investors, including Airtek Capital Group.

"This investment round illustrates Quorum’s continued momentum as its one-click backup, recovery and continuity solutions make their mark on the DR industry," said Larry Lang, CEO, Quorum. "We’re very excited to continue working with our existing investors and welcome the opportunity to work with Mr. Smith and Toba Capital as we build on our success in a growing market."

"SMBs are beginning to look at BC differently, consequently moving from the old world of backup to tape, to a new world of recovery with the hybrid cloud," said Smith. "With its hybrid cloud solution, Quorum is leading the creation of a new category in DR. This was a driving reason behind the decision for Toba Capital to invest in the company."

Proceeds from the Series B funding will be used to expand sales, marketing and support for Quorum’s one-click backup, recovery and continuity solutions, which have seen significant demand over the past year. The funding will also be used to hire additional engineers to extend product portfolio. The Quorum hybrid cloud and appliance solutions for HA and DR have been hailed by industry luminaries as disruptive technologies, challenging the status quo of backup software from Symantec and other legacy backup players. This is due to Quorum’s ability to help SMBs avoid expensive downtime and recover from disaster in minutes, as opposed to days. The solutions also offer automatic and on-demand testing at no additional cost, which is a critical part of any BC plan.

The growing demand for Quorum’s technology is underscored by findings presented in its recent DR report, which bring the realities of system downtime into focus. According to the report, most SMBs experience at least one instance of downtime a year, and it is most often caused by hardware failure. At an estimated loss of $74,000 for each hour of downtime, SMBs are eager to safeguard their revenue, customers and reputation with the Quorum solutions.