The UK-based business received the funding from existing backer Dawn Capital and new investor Index Ventures. It will use the cash for research and development and to build its market presence.

Norman Fiore, a partner at Dawn Capital, says, ‘As a mid-size fund, [we realised] over time that Mimecast’s dramatic growth would require us to look externally to fully exploit the market opportunity.’

Bernard Dalle, a partner at Index Ventures, will join Mimecast’s board.

Mimecast was founded in 2003 by CEO Peter Bauer and CTO Neil Murray. Bauer says the global economic downturn has benefited providers of software-as-a-service.