Home CompaniesB2B Atlanta VCs inject $2M into Durham B2B software startup

Atlanta VCs inject $2M into Durham B2B software startup

by Chantal Allam

Ransomware, malware, denial of service attacks are just some of the constant threats plaguing today’s cloud infrastructures.

But this North Carolina B2B software startup says it’s putting an end to that.

Arpio, headquartered in Durham, has created a SaaS platform that it says protects and eliminates “catastrophic downtime” for cloud-native computing platforms, such as Amazon Web Services (AWS). It recovers data “in just minutes” in the case of region failures, human error, or any other disaster.

Now, thanks to a $2 million injection of funds led by Atlanta-based Valor Ventures and other participants like Y Combinator and Uncorrelated Ventures, it’s getting ready to scale.

“Arpio’s timing is about as perfect as it can be,” says Valor’s general partner Robin Bienfait, who will join Arpio’s newly formed board.

The global disaster-recovery-as-a-service (DRaas) market is expected to reach $23.3 billion by 2027, according to a new study by Polaris Market Research.

“All computing is modernizing to become cloud-native,” says Bienfait. “All new applications are built from the ground up to be cloud-native. Arpio benefits from both trends.”

With early customers like Nursegrid, Nordcloud, and PatternHealth giving the product “rave reviews,” Arpio’s co-founders say the time was right to raise a seed round.

“We are excited to have Valor Ventures as an investor,” says its CEO and co-founder Doug Neumann, who previously served as vice president of Systems and Software for Bandwidth.

“Valor brings decades of experience investing at seed stage and helping entrepreneurs scale B2B software companies. [We] are thrilled to have Robin on board. She is an expert in cloud computing and disaster recovery from her experience running some of the most important Internet infrastructures, from AT&T’s IP network, to BlackBerry’s secure messaging network, to Samsung’s mobile phone business.”

Growing DRaas market

Back in 2017, Neumann and his co-founder Shaw Terwilliger were working elsewhere when AWS famously suffered a region-wide outage of the S3 service in Northern Virginia.

The subsequent cascade of failures within that region brought much of the internet down.

“We went down too,” they recall.

For them, it seemed unthinkable that cloud-native applications could be so easily taken down, and there be no “one button” solution.

The idea for Arpio was born.

Within the DR market, Arpio’s solution focuses on customer workloads at the leading cloud provider, AWS. AWS has more than 1 million customers – a market estimated “between $6 billion and $18 billion” alone.

Arpio says it plans to expand to do the same for the Microsoft Azure and Google Cloud markets, and will be hiring sales and technical leadership.

“Arpio is engaged in a national search for the right sales leader and looking into the Atlanta market as it grows,” a spokesperson says.


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