Carbonite Raises $3.5M in Additional Funding

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3i leads investment round.

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Carbonite, Inc., the leading provider of simple, inexpensive, automatic PC backup over the Internet, today announced the close of its Series A, phase 2 investment round. Venture and private equity firm 3i led the round, with additional participation from previous investors including Common Angels. The latest round brings Carbonite’s total venture funding to $6 million. The company will use the proceeds for ongoing marketing programs supporting its automated, Online PC Backup product as well as infrastructure development.

As few as 3 percent of PC users backup their data on a regular basis. What’s more, Carbonite research assessing customer experiences prior to installing the company’s online backup solution reveals that 87% of respondents had lost data, and 80% of those respondents categorized their data loss as either a “hassle” or an “outright catastrophe.”

“Industry reports anticipate that sales of digital still cameras alone will be 29.1 million units in the next two years,” said 3i’s Jiong Ma. “Then consider other market elements such as portable music players, multimedia cellular devices and basic PC or laptop purchases. When combining the files from those consumer devices and others not even mentioned, we are looking at an enormous amount of consumer digital files that require safekeeping. Carbonite’s business model, with its accessible distribution channels and non-intrusive technology, seems to be the right answer to a growing problem.”

Launched in 2005 by serial entrepreneurs David Friend (CEO) and Jeff Flowers (CTO), Carbonite addresses the all-too-common consumer struggle with losing personal computer data. Online PC Backup offers unlimited storage capacity at an affordable price and is easy to use. Simply set and forget: Carbonite’s software detects an idle Internet connection and gets to work backing up new and modified files. File icons in Windows “My Computer” are tagged so that users can quickly determine what has or has not been backed up. File recovery is equally as simple.

“Our investors understand that we live in an era when people save their whole lives, everything from entertainment to finances, on their PCs,” said David Friend, CEO and President of Carbonite. “The possibility of losing that data is rarely considered until we come home one day to find everything gone. Why take that risk when security and Internet technologies can solve the problem painlessly?”

Carbonite backup, offering unlimited storage space, is currently available at Amazon.com, J&R Music & Computer World, and Staples as well as online at http://www.carbonite.com. Subscription rates are only $49.95 for one year and $89.95 for two years.

About 3i

3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.

3i's Venture Capital partners focus on investing in scaleable seed and start-up and early-stage technology and healthcare businesses on a global basis. The business currently manages investments across Europe, US, Asia and Israel, valued at over $1bn. 3i VC plans to invest $1.5bn funds over the next five years in exciting and ambitious companies in three main areas: healthcare (medtech and biotech), consumerisation of IT (telecommunications, Internet, media and electronics/semiconductors) and the clean technology sector. Recent investments include Cambridge based DeepStream Technology (intelligent embedded sensors), Sulake (gaming community), The Cloud (wifi), DiBcom (mobile TV) and TransMedics (organ transplant system). Recent successful realisations include Interhyp (online mortgages, €301m IPO), Mob365 (to Sybase for $400m), Searchspace (fraud detection), UbiNetics (3G measurement & monitoring), KuDOS (pharmaceuticals), Arakis (biopharma), dtms (comms services), RedDot (web design), CSR (bluetooth), Element5 (ecommerce), Bookham (optical systems), Virata (DSL chips) and many others.

For more information, go to http://www.3i.com.

About Carbonite

Carbonite was founded in 2005 and is the number one consumer backup company. Although data loss is a very common problem, few people backup their PCs. Burning CDs is tedious and error-prone. Outboard hard drives are expensive, complicated, and vulnerable to theft, fire, and viruses. Business-oriented online backup services are too complex and expensive for consumers. Carbonite is dedicated to simple, inexpensive, automatic PC backup over the Internet.

At Carbonite, we believe PC users shouldn't have to think about backup. Our mission is to provide an inexpensive, reliable and truly easy-to-use solution for the mainstream PC user; one that is simple, safe and always on™. For more information on Carbonite, visit http://www.carbonite.com.

The names of actual companies and products mentioned herein may be trademarks of their respective owners.

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Heather Ailara

Racepoint Group, Inc.

781.487.4650

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