Cloud and Web Hosting Industry Trends in Private Equity Investment
As the web hosting and cloud computing markets mature, the mix of companies achieving success in raising venture capital has changed. The industry has attracted well over a billion dollars in investment so far in 2017. However, most successful funding rounds have been focused on software rather than infrastructure.
With Dropbox said to be preparing for an IPO, motivation to find the next internet service unicorn remains high.
At the same time, funds like the initiative launched in May by Cisco, Emery and Texas Tech to support enterprise software and cloud computing companies in Europe show the continuing emergence of non-traditional investment groups in the industry. The fund, managed by Notion Capital, is expected to invest in roughly 20 early-stage companies during the next decade. Startups can leverage the resources of programs like incubators, which can sometimes reduce or delay the need for capital, and some governments offer grants not only for startups, but also for expanding technology companies.
By considering recent funding rounds announced in the industry, several possible trends can be identified. Indeed, it’s important to understand the market for investment in the industry in order to make difficult business decisions about finance strategy.
Cloud Management and Security
The most active area of investment in the cloud and hosting ecosystem appears to be cloud management and security. Tools to provide control and visibility are popular among organizations