is growing its cloud rapidly. After growing 44 percent year-over-year, the cloud-based infrastructure-as-a-service (IaaS) provider will continue to grow its operations in Denver, with a new $11 million round of funding.
"The Faction team has earned our respect and enthusiasm by consistently delivering strong top-line growth coupled with substantial gross margins," says David Solomon, managing director of Meritage Funds. Meritage Funds and Sweetwater Capital are increasing their investments in the company. The new round of funding also included two new equity investors, Charterhouse Strategic Partners and Rifkin-Pottle Group, and debt financing from Ares Capital Corp.
"Faction's IaaS offerings clearly met and exceeded the needs of the company's target customers as evidenced by the addition of a record number of new customers, a record-setting number of Faction customers expanding their current service and customer retention rates well in excess of industry expectations," Solomon says. He states that the company shows a strong commitment to service as well as expanding its services.
In 2016, Faction was named a leading service provider on CRN's Data Center 100 list last year. The company partnered with Level 3 Communications, and BluePrint Information Management and Security Services. The company also released its Faction Internetwork eXchange (FIX) service allowing enterprises to connect private cloud and colocation resources into public clouds and introduced Faction Forums, a networking event series.
"The continued substantial support we're receiving from reputable and knowledgeable investors is a testament to the groundbreaking technology developments we're creating in the cloud arena, especially with our unique hybrid cloud and multi-cloud environments," says Luke Norris, Faction founder. "This new funding round will go toward serving our rapidly growing customer base, bringing new products to the market, expanding our employee base and growing our global footprint." The company is likely to introduce new products and services in 2017, he adds.
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