Bain Capital Ventures leads $87.5M Series A investment in cloud startup HYCU to disrupt the $11 billion data and backup recovery market

According to Markets and Markets, the data and backup recovery market is anticipated to be worth well over $11 billion by 2022. However, legacy data protection solutions are predicated on outdated and appliance-based storage, which is an antiquated and complex approach. Enter HYCU, a Boston, MA-based tech startup and provider of multi-cloud data backup and recovery as a service. HYCU provides a purpose-built, SaaS-based solution and offers a simpler more cost-effective alternative to legacy data protection solutions.

Today, HYCU announced it has closed an $87.5 million Series A financing round to hire more than 100 new employees in the Boston area to achieve rapid scale. The round was led by Bain Capital Ventures, with participation from Acrew Capital. In addition to the funding, HYCU also announced that Enrique Salem, Partner at Bain Capital Ventures, will join its Board of Directors.

With the new $87.5 million war chest, HYCU is now poised to consolidate on wide market penetration, as the first as a service, cloud-native backup and recovery solution provider for both on-premises and public cloud IT environments. The new funding also reinforces the company’s leading market position and continued momentum.

Founded in 2017, HYCU is the fastest-growing leader in the multi-cloud backup and recovery as a service industry. By bringing true SaaS-based data backup to both on-premises and cloud-native environments, the company provides unparalleled data protection, migration, and disaster recovery to more than 2,000 companies worldwide. The company employs 200 people across the globe.

Bain Capital Ventures partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in startups driving transformation across industries, from SaaS, infrastructure software, and security to fintech and healthcare to commerce and consumer tech. The firm has helped launch and commercializes more than 240 companies, including DocuSign, Jet.com, Lime, LinkedIn, Redis Labs, Rent the Runway, SendGrid and SurveyMonkey. Bain Capital Ventures has $6.1 billion in assets under management with offices in San Francisco, New York, Boston, and Palo Alto.

Commenting on the funding, HYCU CEO Simon Taylor said, “Today marks a significant milestone in the history of HYCU. From day one, our mission has been to grow responsibly and to deliver innovation and solutions that align with our partners’ and customers’ business objectives. We were the first in the market to understand that companies will always have hybrid infrastructures and need reliable backup and recovery, regardless of where they keep their data.

Taylor continued, “At the time, the concept of breaking data protection silos and running truly as a service across the enterprise seemed a concept versus a reality. We’ve proven it’s not only possible, it’s happening now, and will be the way of the future. To become a member of the Bain Capital family is a testament to the team staying true to our vision for building frictionless, purpose-built solutions that simplify our customers’ evolving data protection needs.”

Since 2017, HYCU has delivered award-winning solutions to eliminate the complexity that are intelligent, application-aware services with full-coverage for both on-premises and public clouds. From delivering the industry’s first, purpose-built data protection for Nutanix to expanding to VMware, Google Cloud, and Azure Cloud, HYCU now has more than 2,000 customers in more than 75 countries.

With the introduction of HYCU Protégé, a lightweight, cost-effective cross-cloud migration, management, and disaster recovery solution for enterprise applications, HYCU will use the funding to expand and grow its application, public cloud and SaaS-based innovations as well as hire aggressively in Boston and North America to meet the company’s growth goals. As has been proven, customers benefit from reduced complexity and efficient, reliable data protection, regardless of whether the data resides on-premises or in the public cloud of their choice.