Apr 25, 2012
Zak Boca

I am proud to announce that we have closed on our first outside investment, with Boston’s Battery Venture Partners. To date, we have been 100% self-funded, so this quite an exciting event for us and represents great things to come!

We greatly appreciate your loyalty and we look forward to continuing to improve our services.

Zak
Co-Founder & CEO

To read the official press release please visit ——–
http://www.singlehop.com/about/battery_ventures.php

Comments

    I’m a little worried about what this means for the future of SingleHop.

    I’m a very happy, loyal customer of SingleHop. Up until now as a private company your focus has been on offering great services, great support and building a great company.

    Now that you have 3rd party money involved, are you not worried that their pressure at turning a profit will push SingleHop in a bad direction?

    I guess I’m just confused as why it was necessary since SingleHop is doing so well on it’s own, growing so quickly and opening up new data centers.

    What was the reasoning behind seeking venture capital?

    Posted by Robert Schultz on April 26, 2012 Reply
    Dan Ushman

    Hi Robert,

    You’re definitely not the first person to ask about how the transaction will impact service. It’s an important question and I am happy that you asked it here, on our blog, so that our dialog will be available to others who may have the same concerns.

    The short answer: it won’t have any impact on service quality at all. Zak and I retain controlling interest in the business, and the business is already very profitable and healthy. Everyone’s incentives and interests are aligned to building long-term value for the company, and the only way we can do that is by continuing to provide a high quality service to our customers. Without the loyalty of clients, no business can grow.

    Our decision to take on outside capital was pretty complex, as you can imagine. I guess I can sum it up by saying that all we really want to do is: continue to expand the business and take it to the next level. We believe that by partnering with Battery and leveraging their resources, which are a lot more than just capital, we can scale the company faster and better. Battery brings a LOT to the table, from helping us attract great people, to tremendous operational experience with some very cool companies—Akamai, BladeLogic, Groupon to name a few. Our new board members Dave and Morad bring a wealth of knowledge to the table.

    And most importantly, Battery understands what makes us successful is the loyalty of our customers, and, frankly, no one wants to mess a good thing up :-)

    I hope that helps.

    Dan

    Posted by Dan Ushman on April 26, 2012 Reply

    Dan, thank you very much for responding. I appreciate your honesty and I am looking forward to remaining a SingleHop customer for life :)
    Thanks again.

    Posted by Robert Schultz on April 26, 2012 Reply

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