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VMblog Expert Interview: HYCU Secures $87.5M in Series A Funding Round Led by Bain Capital Ventures

interview hycu simon taylor 

HYCU, Inc. a pioneering enterprise software company specializing in multi-cloud data backup and recovery as a service By bringing true SaaS-based data backup to both on-premises and cloud-native environments, the company provides industry-leading data protection, migration and disaster recovery to more than 2,000 companies worldwide. Based in Boston, Mass., the company employs 200 people across the globe.

This week, HYCU announced the company secured its first institutional round of financing. With $87.5M in a Series A round led by Bain Capital Ventures and participation by Acrew Capital, VMblog spoke with Founder and CEO Simon Taylor. Simon shared more on why the need for funding and what the company plans to do next.

VMblog:  HYCU has been self-funded and privately held, why the need for funding and why now?

Simon Taylor:  This is HYCU's first institutional round of financing in a Series A from Bain Capital Ventures. While Bain Capital Ventures led the round, Acrew Capital participated as well. HYCU has been organically growing its business since founding and after amassing more than 2,000 customers, it became clear now was the right time to accelerate growth.

VMblog:  What are your plans to use the financing?

Taylor:  We plan to leverage the funding in five key areas.

  1. Expand our executive team.
  2. Add more than 100 sales and marketing professionals worldwide including a number in Boston, Massachusetts where the company is headquartered. 
  3. Increase product coverage across all major clouds. We currently support both Nutanix and VMware for on-premises and Azure Cloud, Google Cloud and AWS as a target and for Nutanix Clusters on AWS and VMware on AWS. We introduced support for our first SaaS-based solution with HYCU for O365 earlier this year and plan to continue supporting additional SaaS-based solutions as well as deepening support for all clouds.
  4. Continue our commitment to put the customer first with a broad expansion of our industry-leading customer success team. We've worked hard over the past two years to exceed customer expectations and truly provide an exemplary customer delight experience. As of today, we're proud that our Net Promoter Score, the percentage that our customers rate the likelihood they would recommend HYCU and our solutions to a friend or colleague, is at 91. This isn't marketing babble to us but a way in which we align our product development and support efforts and we validate with a third-party resource. It's a good barometer to measure the way in which we are engaging with customers and aligning to their business and IT needs. 
  5. Increase our commitment to the channel with new channel executives in every major territory. Our Go-to-Market is 100% partner dependent. Our success is ultimately our partner's success.

VMblog:  What will this Series A funding support?  Are there new executive hires anticipated?  Any specific regions of the world or North America only?

Taylor:  HYCU Is in hyper-growth mode and the company plans to announce new executive hires in the coming weeks. We plan to add more than 100 employees in marketing, sales, and customer success alone in 2021. The company also plans to support growth in EMEA and emerging regions of the world including Japan and ANZ.

VMblog:  Is HYCU stating a valuation at this point in time?  What are the plans for the future?

Taylor:  We're excited to be joining the Bain Capital Ventures family and as a Series A, HYCU is not providing a valuation at this point in time. There are a number of projections in the market that range between $10-15BN. We anticipate this round of funding will provide us significant resources to capture more of that market opportunity. As for future plans, our goal at is to ensure that a majority of the world's companies are able to take advantage of the security, simplicity and protection afforded by HYCU and the HYCU Protégé platform. We envision HYCU as a multi-billion dollar company that will be best supported by the public markets at a point in the future that makes the most sense. 

VMblog:  Why did Bain Capital Ventures choose HYCU to invest in?

Taylor:  HYCU has all the ingredients for success that has historically been a company that Bain Capital Ventures invests in. SaaS simplicity, an industry-leading Net Promoter score of 91 NPS and 450% y-o-y growth clearly differentiated HYCU as a company on track to achieve its aggressive growth goals in the next three years. As Enrique Salem, Bain Capital Ventures Partner and soon to join the HYCU Board of Directors as Chairman of the Board, "We are in the early days of a multi-decade shift to the public cloud. Existing on-premises backup vendors are poorly equipped to enable this transition which in turn creates tremendous opportunity for a new category of cloud-native backup providers." HYCU has been one of the early players in multi-cloud backup as a service working to bring true SaaS to both on-premises and cloud-native environments. Doing this has helped HYCU to become a pioneer and leader in a space that will continue to create large multi-billion dollar companies.

VMblog:  Will this funding help with product development?  Future initiatives?  If so, how?

Taylor:  This round of funding will most definitely help HCYU continue to deliver innovation our customers and partners have come to expect. The list of HYCU firsts and uniques is impressive and growing and this round of funding will only accelerate our efforts to deliver unrivaled simplicity and intelligent automation of cloud-native, as a service solutions to our customers and partners to address their multi-cloud infrastructure environments. You can expect to see a consistent cadence of innovations from HYCU throughout 2021 and well into the future.

VMblog:  You recently introduced support for Microsoft365 (O365), what other SaaS-based applications are in plans to support and when do you anticipate supporting them?

Taylor:  We were thrilled by the reception to our latest SaaS-based solution. With that said, we have no plans to become an O365 backup company. Our focus continues to be on providing customers with the right solution to best address their data protection, backup and recovery needs for on-premises and public clouds. O365 support was just the first in a series of SaaS-based applications HYCU will support in 2021. There is definitely more to come!

VMblog:  Why does HYCU feel it can succeed in a crowded marketspace with both well-funded competitors and large, privately-held and publicly traded companies?

Taylor:  In IT, there are moments in time when significant market trends along with certain innovations create the perfect storm. We are at an inflection point where companies need to maximize their move to the cloud without discarding their existing investment in on-premises infrastructure requirements. We see the future as a service where solutions like HYCU support and augment existing cloud platforms without adding unnecessary complexity and redundancy. At the end of the day, customers should not have to create another silo or infrastructure to support their on-prem and public cloud infrastructures. We think moving, protecting, managing and recovering data across multi-clouds should be a 1-click process with built-in simplicity.

VMblog:  Today marks World Backup Day, what are you doing to celebrate?

Taylor:  It's great that there is a day every year where we get to focus on backup. But let's not lose sight of the big picture. Recovery is equally important. With that said, any day that we can celebrate taking care of your important data, files and workloads is truly special. Just make sure you're using HYCU!.

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Simon Taylor is the Founder and CEO at HYCU, Inc. As CEO, Simon creates and executes on the vision and strategy of the fast-growing global company. Prior to HYCU, Simon held senior executive positions at Comtrade Software. Simon also held management and leadership positions at Putnam Investments, Omgeo and Forrester Research. Simon sits on the board of directors of College Bound Dorchester and is an active member of YPO (Young Presidents Organization) in Boston. He holds an MBA from Instituto de Empressa (Madrid) and an BSc Operations Technology from Northeastern University.

Published Wednesday, March 31, 2021 8:19 AM by David Marshall
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