Chief Executive Matthew Dornquast, 49, a computer scientist and co-founder in 2001 of Minneapolis-based Code42, has relinquished the top job at one of the state's technology stars, as the company searches for a veteran growth executive.
Minneapolis software firm Code42 looks for new CEO
Co-founder Matthew Dornquast is stepping down.
June 2, 2015 at 2:24AM
Mitch Coopet, 41, chief technology officer and another co-founder, said Monday evening that he will serve as interim CEO. The board has retained national recruiter Heidricks & Struggle to hire an executive to manage through an accelerated growth stage.
"Matthew is on board with this, and he is part of the search process," Coopet said. "He will serve as adviser to the company and continue to serve as a board member. The company has never been stronger.
"We've been focused on the enterprise space, companies greater than 1,000 employees, and there's been an amazing opportunity in endpoint data security, backing up laptops and desktops at businesses and home. We solve some pretty interesting problems in security and compliance. Our goal is to continue accelerated growth."
Code42 grew revenue from $40 million to an estimated $65 million in 2014 and employs more than 400 people, most of them at Riverplace on the Mississippi River.
The company also has been a source of concern since it abandoned plans last December to move to a planned development in Uptown, which could have accommodated up to 700 workers. There was speculation about a sale of what has become one of the Twin Cities' prized software companies. Or at least growing pains. Officers and directors of the company have said they prefer to remain independent and possibly launch an initial public offering of stock within two to three years.
The three founders are technology entrepreneurs but not expert in larger-company management, and wanted to focus more on technology, insiders said.
Michael Gorman, managing director of Split Rock Partners, the Eden Prairie-based venture capital firm, said the board and senior management have been planning a move to an experienced outside manager for months.
"This is a reflection of success," Gorman said. "As companies scale, they develop new challenges and issues that are the burdens of growth. We're trying to ensure this company is equipped to go the distance … and fulfill the potential of the business."
Code42 has received industry laurels for its endpoint data protection and backup products, as well as secure file sharing software that combines ease with security. The company said it has 37,000 business customers, including Expedia, Procter & Gamble, Harvard University, Mayo Clinic, Uber and Lockheed Martin.
CrashPlan pushed Code42 into the Big Ten of data backup firms with a backup system that works for consumers and business, according to analysts. And Code42 last year introduced promising SharePlan to both markets. It is designed to swiftly synchronize and share large files across mobile devices and computers, jumping into competition with firms like Dropbox and Google.
Neal St. Anthony • 612-673-7144
The Birds Eye plant recruited workers without providing all the job details Minnesota law requires.
