On Wednesday, Seattle-based cloud computing startup CoreStack announced a $4 million investment from Iron Pillar. This investment comes just a few months after the company raised its $8.5 million Series A round in March.
Cloud computing has become increasingly popular over the past few years, but cloud adoption has skyrocketed in 2020 thanks to businesses operating remotely and an increased demand for software solutions. But as businesses shift to the cloud, there are a few data privacy and security regulations they have to keep in mind, which is where cloud governance comes in.
Cloud governance essentially refers to the process of monitoring how the cloud is being used and whether it’s in compliance with the rules. Startups like CoreStack are helping companies making the transition to the cloud by taking care of cloud governance for them.
The CoreStack platform works autonomously to make sure companies adhere to cloud compliance standards, even when dealing with multiple cloud servers and products. It can also look for ways to boost efficiency, by doing things like flagging avoidable costs or operational bottlenecks.
This new investment comes at a time when demand for CoreStack is rapidly increasing. The company has grown over 200 percent year-over-year for the past three years, and has signed many new customers across Europe, the United States and India.
“Over the past couple of years, CoreStack has delivered needle-moving value to enterprise companies. Customers see consistent outcomes such as 50 percent improvement in cloud operational efficiencies, 100 percent compliance to standards and 40 percent savings in cloud costs,” CEO and founder Ezhilarasan Natarajan said in a statement. “Iron Pillar came along as the perfect partner to help us expand globally, not only by way of expanded investment interest to Series A financing, but more importantly by way of introduction to customers, partners and advisors.”
