Cloud Engines Receives $15 Million in Financing

Cloud Engines, Inc. has received $15 million in financing from new investors Softbank Capital and Morgan Stanley Alternative Investment Partners (AIP) and existing investor Foundry Group.

The capital will be used to continue to expand the global distribution of the Pogoplug service and devices.

"Pogoplug is positioned to become the de facto way that consumers and businesses connect to their home and office storage," said Ron Fisher, General Partner at Softbank Capital. "Pogoplug’s capabilities are perfectly suited for integration with offerings from Internet service providers as part of a monthly fee."

"We believe that Pogoplug is on a fast path to becoming the world’s leading cloud storage service," said Jamey Sperans, Managing Director at Morgan Stanley AIP. "What the management team has accomplished to date is remarkable. And the company’s model for delivering unlimited cloud storage to users is both unique and well-timed given the tremendous growth of the global mobile device market."

"This financing allows us to accelerate our worldwide consumer retail channel expansion to make Pogoplug devices easy for anyone to purchase," said Daniel Putterman, President and CEO of Cloud Engines, Inc. "The confidence we have received from the financial community reaffirms that the personal cloud category we are building is going to be a key driver in consumer storage technologies."

Terms of the transaction were not disclosed.