Let’s start by greeting Silicon Valley investors: Accel Partners to the Minnesota Tundra. What brings them to Minnesota is a company that has been up and coming over the past few years, and is starting to make a big splash. Code 42 -based in Minneapolis, Minnesota-- started off in 2001 and has grown ever since. And, this week we have learned that they have just secured a joint Accel Partners/Split Rock Partners investment of $52.5 million. This is a huge indicator of the company’s standings as well as a good bet that they are well on their way to becoming one of the top business data back-up solutions.
Code 42 and Accel Partners
Last year Accel Partners had allocated $100 million for large data companies. It seems that a good portion of this allocation will be given to Minneapolis’ Code 42 in partnership with Minnesota’s own Split Rock Partners.
Code 42 has around 86 employees, as of the end of 2011. The business’ main seller is CrashPlan, which has different variations for home, small business, and large businesses. The software allows for on and offsite cloud data storage in case your system crashes, hence CrashPlan. A good portion of the hardware and software is up and running so according to Yahoo News, most of the cash will be utilized for marketing and brand awareness.
To wrap it up
Getting backed by a big name like Accel Partners not only means a big boost of cash for the company. It also means a bit more street cred. Accel Partners is known for investing in ground breaking companies of the likes of facebook, dropbox, Groupon, and StumbleUpon. Just to name a few. We also see another tie to Minnesota as Split Rock Partners- an investment capital firm, is also part of this transaction. It is safe expect that this transaction goes a long way in showing that tech firms don’t have to be in sunny California to be successful.
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