Code42 Secures $85 Million Investment to Continue Expansion in Endpoint Data Protection, Security, Forensics and Analytics

Financing accelerates growth and company’s ability to solve enterprise data protection and security problems

October 9, 2015

5 Min Read



MINNEAPOLIS, Minn. – October 6, 2015 — Code42, the leader in endpoint data protection and security for the enterprise, today announced that it has secured $85 million in Series B funding led by new investors JMI Equity, a growth equity firm focused on investing in leading software and services companies, and global venture capital firm New Enterprise Associates, Inc. (NEA). Existing investors Accel and Split Rock Partners also participated in the financing, increasing their combined ownership in the company. This brings the company’s total funding raised to more than $137 million.

“Code42 is thrilled to welcome to our team world-class investors JMI and NEA,” said Joe Payne, president and CEO at Code42. “We protect the most important information for the world’s largest enterprises; and our record growth is being driven by Code42’s unique approach to security and encryption, dominance protecting Macs in the enterprise and unmatched scalability. This funding enables us to grow even faster in endpoint backup and accelerates our efforts to build analytics and actionable intelligence on top of the historical archive of end-user data.”

Code42’s growth stems from three primary market dynamics: the explosion of corporate data living on end-user devices, the proliferation of Macs in the enterprise and the consumerization of IT. Only Code42 silently and continuously protects every version of every file living and moving beyond the firewall. And, unlike legacy backup built only for Windows®, Code42 was designed for Apple OS X®, Windows and Linux, making it easy to use and manage across all platforms. Code42’s strength as a leader in consumer backup translates to an elegant user experience and wide adoption in the enterprise. In fact, 76 percent of all Code42 file restores are done by end users themselves. 

Code42 has doubled its enterprise Software-as-a-Service (SaaS) revenue year-over-year, led by global enterprise-wide deployments. Other company growth trends include:

  • Code42 customers make up seven of the 10 world’s largest technology companies; 10 of the 20 most valuable brands in the world; and seven of the eight Ivy League colleges and universities.

  • 85 percent Compounded Annual Growth Rate (CAGR) in Annual Recurring Revenue (ARR) in the enterprise segment over the past three years

  • The volume of data under Code42’s management has grown 4,900 percent since 2012 to five exabytes. That’s 100,000 times the size of the US Netflix movie library.

  • Code42 has more than 37,000 business customers globally.

“Code42’s modern approach to endpoint backup answers the call for global enterprises challenged with protecting the growing amount of information living outside of the data center,” said Harry Gruner, founder and managing general partner at JMI Equity. “We are impressed with Code42’s ability to meet stringent data protection and privacy requirements by allowing customers to control encryption keys wherever their data is stored—public cloud, private cloud or in a hybrid model.”  

“Code42 customers’ backup archive is a unique asset nobody else in security has: all the data,” said Harry Weller, general partner at NEA. “As a result, the company has an opportunity to build a leadership position in unlocking the forensic and analytical value of that data.”

The investment follows a year of strong momentum for the company. In July, Code42 announced Payne, a proven SaaS executive and previously the chairman and CEO of Eloqua, as president and CEO. And, Code42 was named for the third time as one of Forbes’ “Most Promising Companies in America.” Code42’s customer-first mindset—resulting in a 97 percent customer satisfaction rate and a 98 percent customer retention rate—has received national recognition, including a Customer Experience Excellence award from Gartner and 1to1 Media.


About Code42

Code42 is a global enterprise SaaS provider of endpoint data protection and security to more than 37,000 organizations—including the most recognized brands in business and education. The company’s highly secure cloud solutions enable IT and security teams to limit risk, meet data privacy regulations and recover from data loss—no matter the cause. Code42 is headquartered in Minneapolis and backed by Accel, JMI Equity, NEA and Split Rock Partners. For more information on the company and its solutions, visit

About JMI Equity

JMI Equity is a growth equity firm focused on investing in leading software and services companies. Founded in 1992, JMI has invested in over 120 businesses in its target markets and has raised more than $3 billion of committed capital. Combining domain expertise and active partnership, JMI works with management teams to build market-leading businesses and create long-term shareholder value. Realized investments from JMI funds include Autotask, Axeda, BigMachines, Eloqua, Gemcom, PowerPlan and ServiceNow. For more information, visit  

About NEA
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With nearly $17 billion in cumulative committed capital since inception NEA invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 200 portfolio company IPOs and more than 320 acquisitions. Visit

About Accel

Accel is a leading early and growth-stage venture capital firm, powering a global community of entrepreneurs. Accel backs entrepreneurs who have what it takes to build a world-class, category-defining business. Founded in 1983, Accel brings more than three decades of experience building and supporting hundreds of companies. Accel's vision for entrepreneurship and business enables it to identify and invest in the companies that will be responsible for the growth of next-generation industries. Accel-backed companies include Atlassian, Braintree, Cloudera, Dropbox, Dropcam, Facebook, Flipkart, Lookout Security, MoPub, Qualtrics, Slack, Spotify, Vox Media and others.

About Split Rock Partners

Split Rock Partners invests in leading software and Internet services companies. Since 2005, Split Rock has raised $575 million over two funds. Split Rock supports exceptional teams across all stages of company development with flexible growth capital. Representative companies backed by Split Rock’s team include Acquia, Black Duck Software, BlueKai, Calabrio, Code42, Compete, Demandbase, HireRight, InsideView, Intacct, SPS Commerce (Nasdaq: SPSC) and Vormetric. Additional information about the firm can be found at

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