Cloud computing company raises capital for expansion

Digital Ocean, an American cloud computing provider for smaller companies, has raised $83m (£53.5m) to carry out an expansion programme.

The funding will be used to expand the company’s engineering team and help it to develop its position in the market. Digital Ocean is the second-largest provider of cloud computing services after Amazon.

The company, which is based in the SoHo district of New York, is just a few years old. It has developed by offering an easy-to-use service that provides software developers with the use of a remote server for running websites and applications. This financing will mean that the company can double its staff within the next year, taking its headcount to more than 300. The funding will also ensure that the company can expand its storage and networking capacity.

Digital Ocean is expanding so that it can help more startup organisations and to ensure that it becomes the go-to service for cloud computing. The co-founder of Digital Ocean and its chief marketing officer, Mitch Wainer, explained that the company has already grown very rapidly and there are plans to double the size of the office space it is currently using, taking its Sixth Avenue office to more than 30,000 square feet.

By offering services to software developers and leaving Amazon to handle cloud computing for large businesses, Digital Ocean already has a customer base of around half a million. It is hoped that the company will also be able to expand its services overseas.