Investment has been completed on Oct 11, 2021
- Net profit
- +378%
DigitalOcean makes cloud-based technologies affordable, reliable and easy to use. Its platform is used by businesses and developers to easily build, deploy and scale applications on the cloud.
Investment in DigitalOcean became one of the most successful investments in our portfolio and closed with +378% result.
About
DigitalOcean increases developer efficiency. The platform allows developers to focus their energy on creating innovative software and shorten their time on infrastructure management.
The company's product is tailored to small and medium-sized businesses. The platform’s simplicity and quick setup made it popular among software engineers, researchers, and system administrators. DigitalOcean regularly organizes conferences and meetups for the developer community.
The company serves over 600,000 individual and business customers in 185 countries, including Slack, GitLab, TaskRabbit, Atlassian, Rockerbox, jQuery, Compose, InfluxDB, Ghost.io.
The company has offices in the U.S. and India and operates 14 data centers around the world. In August 2020 DigitalOcean was included on the annual Inc. 5000 list, the most prestigious ranking of America’s fastest-growing private companies.
Market
DigitalOcean successfully competes with tech giants Amazon, Google and Microsoft. The company is primarily focused on cloud services and emphasizes simplicity, cost-efficiency and usability in its approach to platform development.
The Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) markets are two of the largest and fastest-growing markets across all industries. In 2020, the worldwide IaaS and PaaS markets for individuals and companies with less than 500 employees were estimated to be nearly $44B in the aggregate.
According to IDC, the IaaS market is expected to grow to $84B in 2024, while the PaaS market – to $31B. These markets combined (both are DigitalOcean’s markets) are expected to grow to $115.5B in 2024, representing a 27% compound annual growth rate.
Details
We bought DigitalOcean stock in May 2019 at $13.80.
DigitalOcean went public in March 2021, and the lockup period for investors at the pre-IPO stage expired in late September. In October, the investment closed at $82.25 per share, with +378% result.