Private equity firm LDC has strayed from its traditional buy-out activity by leading a Series B venture funding into OnApp.
Cloud service company OnApp has collected an undisclosed amount of investment capital so that it can fund a new line of products and services in the coming year.
The funding round comes nearly two years after LDC initially provided development capital to the London and New York-based business. OnApp has now received $20 million across the two rounds.
OnApp services are used to power public cloud services for 500 service providers in 39 countries. It now plans to use its Series B funds to expand into new global markets and build on a customer base which currently includes PEER1, GMO and UK2.
The company was founded in July 2010 and then spun-off from partner company UK2 Group in 2011 following UK2’s acquisition by LDC.
Ditlev Bredahl, CEO of OnApp, says the funding round gives the business a ‘solid financial base’ so that it can continue to create products.
LDC’s last development capital deal came back in December when it backed public relations consultancy Blue Rubicon through a transaction which valued the business at £30 million.
Alongside the support provided to insurance claims-related service business Keoghs, Blue Rubicon was the only development capital deal closed in 2012.