New start-up Cloud Capital unveiled it has raised $7.7m (£5.8m) in a latest funding round.
The funding was backed from a series of venture capitalists, including Connect Ventures, Backed Ventures and Middlegame Ventures.
Cloud Capital plans to use the capital to redefine how finance teams manage cloud spend by building the first fintech platform for the cloud; enabling companies to forecast usage, unlock savings and reduce financial risk from long-term cloud commitments.
The company is founded by Edward Barrow, Spencer Pingry and Zack Liscio, a trio who have collectively managed more than $500m (£376m) in cloud spend.
“We believe cloud infrastructure is the largest broken market in tech,” said Barrow. “We have been in the driving seat; we have built the forecasts and we have lived the pain.
“We built Cloud Capital to give CFOs the same level of control over cloud that they have across the rest of the P&L.”
For CFOs, cloud is now the second-largest cost after headcount – typically 6% to 12% of revenue in SaaS businesses and as high as 30% to 40% in AI-native companies according to latest figures.
“Cloud has always been a massive cost center but, with AI workloads driving usage through the roof, it’s become the fastest growing and least controlled line item on the P&L,” Liscio added.
Pingry explained how Cloud Capital is shifting the dynamic. “Other tools help engineers save money. We help CFOs manage risk,” he said. “We are building financial infrastructure – a control layer for cloud that gives companies a new way to finance and optimise cloud like any other major investment.”
Cloud Capital raised an initial $2.3 million pre-seed round led by Connect Ventures alongside a number of fintech angels.
Shortly thereafter, the firm raised a $5.4 million seed round led by Backed Ventures and Middlegame Ventures, with additional backing from DFF Ventures.
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