Private Cloud Provider ADAR IT Secures $2.4 Million in Funding

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Cloud provider ADAR IT has announced a $2.4 million funding deal MK Capital. Announced this week and reported by the Chicago Tribune, the deal will see BOSI Global brought in as an operating partner.

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, which raised a little less than ADAR in late January. While data sovereignty concerns may have helped, the ADAR deal indicates that American capital is still bullish on cloud hosting.

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