HYCU backup closes first funding round, eyes IPO

Privately funded since its inception, HYCU secured an $87.5 million Collection A funding round Tuesday.

HYCU options to add 100 new workforce and will think about likely public. Bain Capital Ventures, which led the funding round, understands the info security current market well and can enable HYCU get to the upcoming amount, mentioned CEO Simon Taylor.

Dependent in Boston, HYCU gives multi-cloud info security. Its goal-designed backup and recovery began out supporting Nutanix and has since expanded to VMware, Google Cloud, Microsoft Azure, AWS and Workplace 365.

“Backup as a services has seriously entered its time,” Taylor mentioned. “COVID was a catalyst for that.”

The pandemic’s have an effect on on info security, funding approach

How businesses deal with ransomware has been a critical element of info security throughout the coronavirus pandemic. Taylor mentioned a lot of HYCU backup shoppers have been attacked. Some mentioned their only protected info was in HYCU.

The pandemic uncovered the simple fact that info saved in the cloud is not always guarded.

Simon Taylor

“Backup moved from remaining a next-course citizen to a 1st-course citizen,” Taylor mentioned.

The pandemic created closing a funding round an strange approach. As all meetings were distant, Bain and HYCU associates never ever satisfied in particular person.

“It speaks volumes about the simplicity of HYCU” and its correct SaaS character, Taylor mentioned. For case in point, it would have been a far more difficult proposition to display components remotely.

There were challenges. In a distant environment, it is really important to replicate the bodily knowledge of meeting, so both of those sides put in a ton of time striving to get to know every other individually, Taylor mentioned.

Acrew Capital also participated in the HYCU backup funding round.

HYCU has by now began recruiting for its new positions, with a target on the Boston region. Sales and marketing and advertising and consumer success are two critical employing parts, Taylor mentioned. The firm has two hundred workforce and aims to have three hundred by the conclusion of the calendar year and four hundred or 500 by the conclusion of 2022.

“We want to pour gas into the tank,” Taylor mentioned.

A mixture of study and enhancement (R&D) in addition income investment decision can make feeling, mentioned Krista Macomber, senior analyst at Evaluator Group.

“HYCU likes to go deep on optimizing for certain environments like Nutanix and Microsoft, and additional R&D assistance could enable to bring alternatives to current market a little bit far more promptly although retaining the exact same standards for quality,” Macomber mentioned. “Further income assistance could enable to enhance HYCU’s recognition and traction in these marketplaces that have promptly turn into incredibly crowded.”

Following techniques for HYCU

Taylor mentioned HYCU backup has a range of competitors in the current market, which include legacy gamers these types of as Commvault and Veritas, as well as suppliers centered only on cloud these types of as Druva.

The IPO route is almost certainly the most liable just one for us.
Simon TaylorCEO, HYCU

Commvault is a public firm. CEOs of a number of other info security businesses, these types of as Druva, Rubrik and Veeam, have mentioned IPO options are on the table. 

“The IPO route is almost certainly the most liable just one for us,” Taylor mentioned.

The want for correct backup as a services is far more important than at any time, he mentioned, and to get to an IPO, HYCU backup requirements to be certain it is a current market leader.

“What could make an IPO make feeling is that HYCU is targeting developing parts of the current market that are observing investment decision — like SaaS security,” Macomber mentioned.

HYCU experienced existed underneath the Comtrade Program label, launching its 1st product in June 2017. The Comtrade Group spun off HYCU into a different firm in March 2018, when Taylor grew to become CEO.

HYCU promises 2,000 shoppers. Taylor mentioned he desires to push recognition of the firm worldwide. Just as Salesforce is deemed the consummate CRM platform, Taylor desires HYCU to be the exact same for conclusion-to-conclusion backup as a services.

Though he did not supply particulars, Taylor mentioned the firm options to expand across platforms and can natively integrate new solutions.

Help for Google Workspace could make feeling supplied HYCU’s present Google Cloud services, Macomber mentioned. Safety for other SaaS purposes, these types of as Salesforce, is a possibility as well.

“I would also glance for some additional activity all-around containerized workloads, which are coming down the pike in conditions of output usage — that means that their security requirements to be prepared for,” Macomber mentioned.