Our Investment in Cloud Factory

Riverside Acceleration Capital (RAC) is proud to announce our recent investment in Cloud Factory, a Danish cloud distributor offering cloud management services and hosting for managed service providers.

Cloud Factory was established as an alternative to the few, very large global providers that had dominated the cloud distribution market for years. The founding team saw a need for a more localized, partner-focused approach aimed at adding business value from the smallest detail to the greatest potential.

Today, Cloud Factory has filled that gap with a ‘one-stop-platform’ for service providers. The company offers a hassle-free partner portal for managing cloud hosting and license management. They also act a ‘reseller for resellers,’ enabling their partners to provision their end customers with services including Microsoft, Dropbox, Acronis, and ESET.

Cloud Factory has carved out a slice of the cloud services market by focusing strictly on indirect channel distribution – selling to managed service providers (MSPs) rather than end customers.

According to Jacob Schaumann Schmidt, founder of Cloud Factory: "We're all about tackling problems before they even hit our MSP partners. This happens because we really listen to what they're going through, especially when it comes to building a recurrent revenue business. Our main goal is to make managing cloud services much simpler than the old way.”

In Europe, cloud spending continues to grow with a compound annual growth rate of 22% projected through 2026, resulting in a potential market value of $258 billion. Meanwhile, the Cloud Factory team has grown revenue by 80% and its partner-base by over 50% in the past year with no intentions of slowing down any time soon.

The investment marks Cloud Factory’s first capital raise outside of a small friends and family round. The team has grown organically to its current size of 50 employees, supporting over 400 partners and 600k end customers worldwide. In recent years, they’ve expanded their market from an initial focus on Denmark to northern Europe and the rest of the Nordics. The company recently opened its first Benelux office and plans to use the new capital to help accelerate expansion.

To learn more about Cloud Factory and their partner-centric model, visit www.cloudfactory.dk

Christian Stein
Partner
2/27/2024
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