Investors digest Alibaba $120M investment in Kabam

The days and weeks following the conclusion and public announcement of Alibaba have been helpful as expected in helping Kabam CEO and founder Kevin Chou and the Kabam team broaden awareness for the game company’s capabilities and potential.  Media including our great 50 Cal neighbors at VentureBeat have given updated treatments of Kabam’s positioning and Alibaba’s positioning.  Bottom up equity public investors have so many points of reference available to them in relation to Alibaba.  On one hand there are those minds who upon awareness of the Alibaba IPO may have been tempted to project Alibaba as the prime investment vehicle to allocate money to high quality Chinese related info-tech-media-commerce.  Some on CNBC have speculated about the company’s future ability to acquire companies.  This helps grease some investors imaginations or point to option valuation thinking for more formal investors.   At the same time, Kevin has talked about (and even written on LinkedIn) how painstaking the entire process was to meet, engage with, and educate Alibaba team members in order to put the company in position to decide whether or not to forge a partnership in the form of investment.  People who are new to investing in corporate equities can broaden their awareness of what it is like for acquisitive companies like Alibaba, Google, Apple, Facebook and many others to spend time and energy pursuing an investment or acquisition by reading Kevin’s post...

Fountain Partners Provides $13 Million In Lease Lines of Credit to DigitalOcean

SAN FRANCISCO, Calif., April 29, 2014 — Fountain Partners announced it has provided a total of $13 million in equipment lease lines of credit to DigitalOcean, the world’s fastest growing cloud provider. The lease lines are helping DigitalOcean grow its customer base by expanding data centers worldwide, including new centers in Amsterdam and Singapore, as well as their first center in London opening this summer. Karl Alomar, COO of DigitalOcean, said his company began using an initial $3 million lease line of credit in 2013 — its first independent line for direct leases — to increase servers at its U.S. data centers, which were straining to handle 30%-35% month-on-month customer growth. DigitalOcean can add more than 4,000 customer accounts for every $1 million worth of servers. “More recently, Fountain Partners came in ahead of the pack again and offered another $10 million, becoming our first eight-figure line,” he said. Fountain recognized DigitalOcean’s need for international capacity with this lease line of credit that included $5 million for overseas expansion. “We had some international capacity before, but this was the first significant chunk of financing dedicated to international infrastructure. This helped us expand in Amsterdam and launch the Singapore data center this year with confidence,” Alomar said. “Fountain Partners understood the business model and got into the weeds of the business model more so than other financing providers. They had good foresight, business understanding, and they knew the market well. They were able to see the opportunity,” Alomar noted. “Fountain Partners was more entrepreneurial in thinking… interested in the direction the company was going rather than just where it was.” DigitalOcean currently...

Digital Ocean closes equity round with Andreessen Horowitz

Today Digital Ocean announced that it closed it’s Series A venture capital equity financing round led by Andreesen Horowitz.  IA Ventures had invested in the Digital Ocean’s prior equity round during 2013 and participated again along with TechCrunch founder Michael Arrington’s CrunchFund.  The $37 million round comes after DO raised just over $3M in equity in the summer of 2013 and augmented that with a significant volume of venture leasing.  Digital Ocean’s server growth follows the company’s popularity among users and the availability of equipment leasing for IT gear.  Now that the round of equity is closed and announced readers will see many more charts and references to Digital Ocean’s server counts, popularity among developers and competitive positioning relative to Rackspace, Amazon cloud services, Google Compute Engine and others.  Fountain Partners congratulates Ben, Moisey, Karl and Larry on all their efforts to build a great product for...

Accolade tops Inc. 500 list of Fastest Growing Healthcare Company

According to Inc. magazine Accolade, Inc. has been ranked the number one fastest growing healthcare company over the last three years on the 2012 Inc. 500.  Overall, Accolade ranked thirty-third on the 2012 Inc. 500 list of America’s fastest growing companies.   The 2012 Inc. 500|5000 is an exclusive listing of the nation’s fastest growing private companies ranked according to revenue growth percentage when comparing 2008 to 2011.   Accolade ranked 33rd overall in the 2012 Inc. 500 survey. Accolade provides an innovative employee benefit that simplifies healthcare complexity for the employees of large employers. Each employee and their family get their own professional Accolade Health Assistant who knows them, knows their benefits, and helps them navigate the healthcare system. The personal connections Accolade Health Assistants nurture with each family result in healthier and more productive employees, greater employee satisfaction and commitment, and significantly lower healthcare costs for their...