Chicago startup scene darling SingleHop, which provides web-hosting services for small businesses, has completed its first ever institutional financing, securing a $27.5 million round led by Battery Ventures.
When we interviewed SingleHop’s founders Zak Boca and Dan Ushman last November, the pair shared how they decided to finally make the leap from college students to full-time entrepreneurs.
“We made a deal with each other,” explained Boca. “If we could get 1,000 customers by our sixth month in business, we’d each quit school and move to Chicago.”
The two met their self-imposed deadline and were off to business. And that business, today is booming. Their 2011 earnings report boasted:
- $22 million in revenue (75 percent over 2010)
- $9.7 million EBITDA (92 percent improvement over 2010)
- Growth to 3,500 active clients
- Increased number of employees by 62 percent
- Ranked #25 on The INC 500 by Inc. Magazine (compared to #58 from prior year)
Singlehop ,which employs 80 people in its two Chicago and one Phoenix locations, ranked #25 fastest growing business nationwide in 2011 by Inc. Magazine. and claims to have 10,000 servers in production. CEO and co-founder Boca stated in today’s press release that the investment gives Singehop “great operational advantages” and SingleHop’s co-founder and CMO Usherman said their new relationship with Battery “comes at an ideal time ” as they continue expansion.