Cloud service provider Quorum has raised $11 million in series B funding, led by new investor Toba Capital, a company founded by Vinny Smith, former CEO at Quest Software (News - Alert). The funding was joined by prior investors, including Airtek Capital Group.
In a statement, Larry Lang, CEO at Quorum said, "This investment round illustrates Quorum's continued momentum as its one-click backup, recovery and continuity solutions make their mark on the disaster recovery industry. We're very excited to continue working with our existing investors and welcome the opportunity to work with Smith and Toba Capital as we build on our success in a growing market."
Adding to Lang’s comments, Toba Capital’s Smith said that small to mid-sized businesses (SMB) are moving from the old world of backup to a new world of recovery with the hybrid cloud. Consequently, noted Smith, "with its hybrid cloud solution, Quorum is leading the creation of a new category in disaster recovery. This was a driving reason behind the decision for Toba Capital to invest in the company."
Proceeds from the series B funding will be used to expand sales, marketing and support for Quorum's one-click backup, recovery and continuity solutions, which have seen significant demand over the past year.
The funding will also reportedly be used to hire additional engineers to extend Quorum's product portfolio.
The company claims that its hybrid cloud and appliance solution is cost-effective and easy to use, and are deployed for high availability and disaster recovery. Some in the industry have called it a "disruptive" technology, challenging the status quo of backup software from Symantec (News - Alert) and other legacy backup players.
In addition, it offers automatic and on-demand testing at no additional cost, which is a critical part of any business continuity plan.
A recent report on Disaster Recovery by Quorum shows that most SMBs experience at least one instance of downtime a year, and it is most often caused by hardware failure.
Per this report, the estimated loss for each hour of downtime is $74,000.