Mimecast lands £13m VC funding

US expansion and R&D to benefit from cash injection

Email management firm Mimecast has received a £13m injection of venture capital funds to expand its US presence and R&D initiatives.

Mimecast is a cloud-based platform aimed at providing end-to-end control of email, including archiving and security. Venture capital firms Index Ventures and Dawn Capital are providing the UK-founded firm with £13m in Series B financing.

"There are two reasons for the venture capital. First is to build our market presence in North America. We launched there in February 2008 and have made surprisingly good progress with 300 customers and a good partnership with Iron Mountain," said Peter Bauer, Mimecast CEO and co-founder.

"What plays in our favour is the rate hosted email is growing. Gartner estimates that hosted email has three times the growth of on-premise email archiving, which is partly down to legislative changes and the age-old problem that end users want much more storage."

The second key area for the funds is in research and development into improving links with customers' existing IT infrastructure.

"We see the evolution of software-as-a-service and the cloud delivered by companies with strong interoperability and integration capabilities," said Bauer.

Mimecast had already integrated into Microsoft Exchange and Outlook and with the additional funds plans to extend this integration to other applications, such as SharePoint, as well as the iPhone, Blackberry and with other SaaS platforms from the likes salesforce.com and Netsuite.

Founded in the UK in 2003, Mimecast has 2,500 customers in the legal, financial services, public sector and manufacturing industries across EMEA and North America.