The Scottish Loan Fund (SLF), managed by Maven Capital Partners, has committed £1.5 million to Cloudsoft Corporation alongside an equity investment led by its existing investors.
The Edinburgh-based business has developed a software platform for the cloud computing market which it licenses to predominantly blue-chip clients.
Cloudsoft, founded in 2008 by Duncan Johnston-Watt, Alex Heneveld and Derek Gray, has grown steadily in a cloud software market expected to be worth over $75 billion (£45bn) by 2017.
An increasing number of large enterprises are moving their software applications to the cloud, and Cloudsoft's Application Management Platform streamlines the development and operation of cloud applications.
The funding will enable the company to expand further into the US market.
SLF said the deal was another example of its support for growth-oriented companies ready to exploit international market opportunities. To date it has committed almost £50m to businesses throughout Scotland.
Mr Johnston-Watt, Cloudsoft's chief executive, said: "The funding from the Scottish Loan Fund will allow us to capitalise on a successful 2014 and crucially provide the support to grow both our sales and product development teams."
David Milroy, investment director at Maven Capital Partners, said: "We are very much looking forward to working with Duncan and his team. They are operating in a fast growing and dynamic market and the feedback from partners and clients highlighted that the Cloudsoft team are held in very high regard within their sector. They have a well-defined roadmap for growth and we are delighted the SLF is able to support the business."
Kerry Sharp, head of the Scottish Investment Bank, the investment arm of Scottish Enterprise, one of the major investors in the SLF, said: "We are delighted to see the Loan Fund continuing its support for ambitious Scottish growth companies. Duncan and the highly skilled team at Cloudsoft have demonstrated strong credentials with blue chip clients. This funding will allow them to build on success to date."
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