A consortium led by Seneca Partners, including Barclays and Finance Yorkshire, has given Vapour a £1m-plus funding boost, making the cloud provider the first north of England business to receive Barclays' Innovation Finance Product.
The move sees Vapour Media rebrand as Vapour Cloud and the funding will support the growth of Vapour's technical and business development teams as well as enhance its cloud portal capabilities.
Vapour has witnessed rapid growth since it was established in 2012 and has previously attracted a multi-million pound venture capital investment.
Vapour works with organisations across the UK, providing business solutions encompassing Internet access, a cloud voice platform and UK-based storage, back-up and replication - all private and fully functional in the UK.
Last year the business merged with Manchester-based Everycloud in a transaction backed by Finance Yorkshire and private investors.
Vapour plans to double its headcount to 42 in the next 12 months, expand its private MPLS network, move to larger premises with a demonstration suite, and launch a new portal.
Tim Mercer, co-founder and CEO at Vapour, commented: "In the two years since conception, Vapour has developed over 50 partnerships, securing a number of rounds of equity funding and now has the support of a major high street bank.
"The investment from Seneca Partners, Barclays and Finance Yorkshire is testament to our vision and ambition. As a relatively newly formed company, it is a major boost for us to secure this support.
"All of the teams involved demonstrated from the start that they fully understood our market proposition and recognised the potential of the business to achieve rapid growth."
Richard Manley, Director at Seneca Partners, added: "Through our group company Acceleris, Seneca Partners has been involved with Vapour since the EveryCloud merger last year.
"As with the merger and previous funding rounds, Acceleris successfully project managed this £1m+ fund raise, which was led with a significant equity investment from Seneca's EIS fund.
"With the new funding and an experienced senior management team, the combined business now has the fire power to drive significant growth through its 'one-stop-shop' sales offering."
David Parr, Relationship Director at Barclays in Manchester commented: "As part of our plans at Barclays to enhance our high growth offering to the market, we are extending our lending capabilities and credit appetite in the technology sector for ambitious, entrepreneurial businesses like Vapour."
David Best, Investment Manager at Finance Yorkshire commented: "We first backed the management team at Vapour Cloud in June 2013 with an investment from our Seedcorn fund, and have now committed £1.3m to support its ambitious growth plans."