Enterprise file-sharing service Huddle has just raised a whopping $24 million led by Jafco Ventures. <\/p>\n
Huddle co-founder Alastair Mitchell said he plans to use the funds to keep up with \"phenomenal\" demand. <\/p>\n
But Huddle was already profitable last year and brings in around $25 million annually. Why would it raise funds? <\/p>\n
We caught up with Mitchell to find out why. Here's what we found out: <\/p>\n
BUSINESS INSIDER: Why did you guys decide to raise this huge round of funding? <\/p>\n
ALASTAIR MITCHELL: It's basically to keep up with demand. We don't need to have the money to keep up cash flow. We've tripled in size every year since we've grown, but the demand we've seen is phenomenal. We've growth 5x in the enterprise sector last year. Users who are buying Huddle in their teams and departments, they are loving it. <\/p>\n
In the last 6 months to a year there's been a huge pull from the top saying actually, we don't want to deploy this to small teams and across the organization. We want to displace the existing legacy software we have.To give you an example, we just planned to renew with one of our biggest customers, they grew from 100 users to 3,000 in 8 months. They ripped out and replaced their SharePoint instance. These are big deals led by the CIO, saying we want Huddle to deliver content collaboration that's to our users, that has the scale and security and support for our needs. <\/p>\n
BI: Any chance you guys have been speaking with other companies about a potential acquisition? <\/p>\n
AM: We've had several offers in the last year alone, we've turned them all down because we're building a big software business. We might be taken up, but our current path is that we're on the path toward an IPO. We have faster growth rates than most of our competition. We're an international business, we're co-headquartered in London and San Francisco. We're seeing international growth and also in the U.S. We see ourselves as a big business IPOing in the next few years. <\/p>\n
BI: What are you guys planning on using the funding for? <\/p>\n<\/p>\n
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Red-Hot Startup Huddle Just Raised $24 Million<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Enterprise file-sharing service Huddle has just raised a whopping $24 million led by Jafco Ventures. Continue reading