Building on already-rapid growth, Faction just raised $14M in additional funding

The future of businesses rests in the cloud, and that’s great news for Colorado’s tech ecosystem.

Denver-based cloud service provider Faction announced on Wednesday that it has accumulated another $14 million in funding to expand its cloud services.

The investment builds on the $18 million Series B it raised in March 2018, and will allow Faction to tap into the growing interest among businesses for VMware Cloud solutions for Amazon Web Services, hybrid- and multi-cloud environments.

This investment will enable us to reach more customers faster, with an even stronger portfolio of managed multi-cloud solutions.”

Faction plans use the new funds to broaden its offerings, which include cloud-based disaster recovery tools. The company will also enable multi-cloud storage with deeper integrations, and expand its global data center footprint.

“Faction is aiming to grow north of 50 percent this year,” said Sean Charnock, Faction’s president. “We’ll be using this funding to build out our products and services, investing in human capital across all disciplines within the company.”

Dell Technologies Capital led the round, with participation from existing investors River Cities Capital Funds, Sweetwater Capital, Meritage Funds and Charterhouse Strategic Partners.

“The need for high-performance and scale-out storage that can expand with customers’ needs across clouds ... is only going to increase,” said Luke Norris, Founder and CEO of Faction in a statement. “This investment will enable us to reach more customers faster with an even stronger portfolio of managed multi-cloud solutions.”

Faction launched as Elementek in 2006 to help businesses build and manage hybrid and multi-cloud networks. The company’s technology allows businesses to move and access data across different clouds — including AWS, Azure and Google Cloud Platform — without experiencing lock-in.

Last year, Faction experienced rapid growth, adding 50 new employees to its Colorado office, and the company doesn’t expect to slow down any time soon. According to research firm Gartner, the market size for cloud is projected to be a $317 billion industry in 2022.