NephoScale

The Company is positioned to be a leader in the fast growing cloud infrastructure services industry. Their value proposition is that they provide public, private, and hybrid cloud services to their direct customers and license their data center automation cloud software to enterprises, technology companies, telcos, carriers, and other hosting companies. Based in Silicon Valley, and with data center locations in California and Virginia, the Company provides cloud services worldwide. Its core data center services include network services, compute services, and storage services and their licensed software platform is highly extensible allowing it to be tightly integrated with almost any network, compute, or storage products. The Company offers a unique Hybrid Compute solution that combines both virtual and dedicated servers in the cloud, and delivers an unbeatable combination of price and performance. The Company generated US$2.5 million revenue in 2013, with 80% growth in cloud services over the previous year. Revenue is currently derived primarily from cloud services based upon direct sales, with fast growing sales pipeline of enterprise cloud, big data analytics, data mining, and webscale application hosting opportunities. Significant additional revenue is expected over the next 12 months from new developing enterprise and OEM software licensing opportunities.

The Company self-funded US$3 million into the development of the cloud platform. It currently raised seed funding of US1.2 million, with the goal of closing a US$3 million Series A financing in 2014-15 to scale up the business and to do expand the sales and marketing.

• Leading technology: the Company’s cloud platform is positioned to be the first to deliver an integrated single-pane view for on-demand provisioning and management of on-premise and off-premise, virtual and dedicated, public and private clouds, on any cloud management system (e.g. VMware, Openstack, and Cloudstack).


• Price/performance leader with unique cloud orchestration, bare metal server provisioning, and SDN, running on open source software and commodity hardware.


• Strong management team: Co-founder & CEO has purchased and successfully operated 3 web hosting companies, helped take a company IPO and significantly contributed to growing that business to annual sales of US$400 million. Co-founder & CTO and the core R&D team held senior roles in the Cloud Product Development and Engineering team at GoGrid, a leading cloud infrastructure service provider.


• Huge market growth potential: The market size of the cloud hosting for Infrastructure-as-a-Service (IaaS) and Hosted Private Cloud (HPC) is currently $25 billion, and is forecast to be $50 billion by 2016, and $100 billion by 2020, with an CAGR of 22% .


• Strong financial performance: The Company has generated US$2.5 million revenue in 2013; monthly recurring sales expected to grow 70% in 2014 and another 80% in 2015. There are over 2,500 registered accounts and over 700 active paying customers. The Company is close to announcing product licensing partnerships with major telcos, technology companies, and systems integrators.

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