Datto Inc. marks the latest to enter the realm of startups with billion-dollar valuations. The Norwalk, Conn., company is making inroads with its private cloud data backup business. The company was started in 2007 by Chief Executive Austin McChord, who was newly graduated from the Rochester Institute of Technology with a degree in bioinformatics. Mr. McChord said he bootstrapped Datto on his credit card, running up $80,000 in debt, and didn’t take venture capital until 2013 when he had a profitable company and was looking for advisers to help the business grow. Fast forward to today, and the company has raised $75 million led by Technology Crossover Ventures at a $1 billion valuation.
ALSO IN TODAY’S VENTUREWIRE (subscription required):
Codiak BioSciences Inc., a company that intends to use biological vessels known as exosomes to enable early detection and treatment of pancreatic cancer, has secured million to launch. Alaska Permanent Fund, Alexandria Venture Investments, ARCH Venture Partners, Fidelity Management and Flagship Ventures are committing the Series A and B funds.
Pandora Media Inc. has agreed to acquire key assets from Rdio, underscoring consolidation in the streaming music business. Oakland, Calif.-based Pandora, a streaming music service, has agreed to pay $75 million in cash for the streaming music business assets of Rdio, the company said.
Zipdrug Inc., said it has raised $2 million in new seed funding and disclosed that it raised $600,000 in earlier, preseed funding.
(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit http://on.wsj.com/DJPEVCNews, scroll to the bottom and click “try for free.”)
ELSEWHERE AROUND THE WEB:
DraftKings Seeks to Delay Some TV Commercials and Ad Payments. As its legal troubles mount, daily fantasy-sports operator DraftKings Inc. has been asking some TV networks to delay its advertising commitments, reports The Wall Street Journal, citing people familiar with the matter.
Companies Borrow Uber’s Best Ideas. Workplace systems that look more like the “gig” economy of contractors are coming to traditional, full-time employers, and many workers seem to love it, writes The Wall Street Journal’s Christopher Mims.