Inflow announced Thursday that it raised $35 million in its fifth round of funding.
Inflow Chief Financial Officer Jim McHose said 40 percent of the funding came from new investors, including venture capital firms such as Telecom Partners, Centennial Ventures and Meritage Private Equity Funds. Previous investors such as Spire Capital Partners, Halyard Capital Fund, Stolberg Equity Partners and Cornerstone Equity Investors also participated in the new round. The Thorton, Colo.-based company provides Web hosting and IT outsourcing services to businesses. It will use the new financing to enhance its products.
Investors in the recent round now own preferred stock in the company, while investors in the first four rounds, who contributed about $263 million, will have their shares converted to common stock from preferred stock. McHose said the company structured the deal in this manner to simplify its financial structure. Owners of preferred shares usually have a claim to earnings and assets in the event of liquidation before common stockholders.