Docker Inc., the commercial sponsor of Docker open source project which creates and runs distributed applications in cloud infrastructure, has wowed Sequoia Capital and secured $40 million in series C funding to boost its technology.
Docker chief executive Ben Golub said the startup had recently started using the $15 million it raised during a funding round in January, and did not require the any financing at the moment. The San Francisco-based organization, previously known as Dotcloud Inc., turned more than a year back from providing its platform as a service to application developers to giving an approach to deliver applications in an institutionalized “container" technique that diminishes both multifaceted nature and sending time.
App developers crowded the open source platform this late spring, with downloads from three million in June to more than 21 million today, as per the company data.
“We started to see valuation numbers that were so high, we thought it made sense to do something now,” Mr. Golub said. “We are really pleased that among our options was Sequoia. “ Valuation for the two-year-old startup was around $400 million.
In spite of the fact that various businesses, including Gilt Groupe Inc., New Relic Inc. also Yelp Inc. are utilizing the stage, that doesn't essentially decipher into revenue for Docker. Mr. Golub said Docker has been exploring different avenues regarding revenuee models for the past couple of months. It charges for commercial level backing for services like sending patches, and for a set of improved developer tools, alongside facilitating, storing and on-premise management as well as monitoring.
Sequoia Capital Partner Bill Coughran said he started talks with Docker on the matter a couple of months back. He said the group and the technology, which standardizes the way applications, are delivered across diverse infrastructures, wowed him.
“We wanted to bring our expertise to Docker and make sure they got enough capital to play this out,” Mr. Coughran said.
Despite the fact that developer enthusiasm for the engineering is an incredible sign, he said it additionally accompanies the danger of those developers overselling it to their chief information officers, he said.
“I’m worried that CIOs think it’s the solution for everything,” he said. “The company needs to continue to build out what they have.”
“Docker has emerged as the de facto standard of how you will build, deploy, and orchestrate applications for the cloud. Its impact on the industry will be huge. Ben, Solomon and the rest of the Docker team are incredibly focused on building an enduring technology company, and I am so proud of all they have accomplished in such a short period of time.” said Jerry Chen, partner at Greylock Partners and Docker board member.
The funding will be utilized for enhancing technology, partner-driven sales and marketing as well as to continuing efforts to build both open source and commercial offerings.
Benchmark Capital, Greylock Partners, Insight Ventures, Trinity Ventures and Jerry Yangalso took part in the Series C round. In a previous funding round, the company had raised $25.8 million.