Internet

Andreessen start-up raises $120 million

Loudcloud, led by Netscape Communications co-founder Marc Andreessen, receives another $120 million in equity funding.

Loudcloud, led by Netscape Communications co-founder Marc Andreessen, today said it has received another $120 million in equity funding.

The company, which helps build and manage Internet operations for businesses, said it plans to use the funding for general operating expenses, including the domestic and international expansion of Loudcloud's sales and infrastructure services. The company was founded eight months ago.

In recent months, Loudcloud has teamed with hardware and software giants including Oracle, Sun Microsystems, Exodus and EMC to access the pieces necessary to provide infrastructure services. The company also recently formed an alliance with Microsoft, the software giant widely held responsible for Netscape's slow demise.

While many Internet start-ups, and even established companies, are finding it increasingly difficult to find investors, Loudcloud has attracted nearly $200 million in less than a year. The extent of the enthusiasm for Loudcloud points to a clear schism forming within the Internet economy, where a premium is increasingly placed on infrastructure and network players while e-commerce and content firms are getting the cold shoulder from both venture capitalists and the public markets.

The investors in this round included Benchmark Capital, Angel Investors Capital Research and Management, Amerindo Investment Advisors, Aurora Technology Funds, Octane Capital Management, Charter Growth Capital, Integral Capital Partners and repeat investors. Benchmark and Angel Investors already have stakes in the start-up.

The company was formed last September to build and run software infrastructure services for large, Internet-intensive companies like applications service providers and Fortune 500 companies.