All three companies are based in the Chicago area, but ADAR serves about 100 small and medium-sized businesses around the world.
ADAR has been providing private clouds since 2007, and offers PC-over-IP connections to their three data centers.
MK Capital is a venture capital firm investing in digital media and software companies in their early and growth stages.
With a high rate of customer retention and a compound annual growth rate of 84 percent, ADAR hopes to bring its existing service offering to more customers with the Series A funding.
“ADAR is offering a solution today for small and medium size enterprises that historically was only available to much larger entities at a significantly higher price point,” said Bret Maxwell, General Partner at MK Capital.
The cloud hosting industry has seen a wave of multi-million dollar investments early in 2014, with one of the largest funding deals secured last month by WP Engine.
While ADAR’s service model is very different from WP Engine’s, a more comparable investment is German managed services provider cloudpartner.de, which raised a little less than ADAR in late January. While data sovereignty concerns may have helped cloudpartner.de, the ADAR deal indicates that American capital is still bullish on cloud hosting.