Backupify, a leading backup provider for cloud based data, closed a Series B $5 million round of funding, led by Avalon Ventures together with General Catalyst and Lowercase Capital.

Backupify works by creating a backup of all the information from one’s social media and web application accounts.  This actually helps IT backup files and move things to the cloud.   Though we are already in the cloud era, some IT departments are reluctant to use it as they deem moving to cloud means giving up their control over data and risk losing everything.

“IT departments tell us regularly that they are reluctant to commit to the cloud until they can be reassured that they have the same control and protection of their data that they have with on-premise solutions. Backupify gives control of the data back to the IT department. Likewise, SaaS providers continue to be receptive to our value proposition as they come to understand that we can help accelerate the overall adoption of SaaS applications,” said CEO and Co-Founder, Rob May.

“The continued support from our investors validates our strategic vision and positions our company to continue expanding our pipeline of innovations to generate strong momentum in 2011 and beyond.”

The new funding will be used to improve data security, maintaining portability and availability of data to Backupify users.  Backupify is also looking to expand operations and explore partnership opportunities, finding more ways to reach customers.  Aside from this, the company is said to be focusing more on Google Apps backup and managing services directed at small to medium-sized business SaaS (Software as a Service) applications in the future.  They just launched their newest tool, Snapshot, which allows users to download and export data from their Google Apps account all with the simple click of a mouse.

Backupify currently has 175,000 total users coming from different social media networks.  Last February, LinkedIn was added to the list of social media they provide backup for.  And in November of last year, they acquired the Swedish backup company TweetBackup for an undisclosed amount.

Backupify’s first round of funding amounted to $4.5 million, and was led by Avalon Ventures and General Catalyst with additional participation from Lowercase Capital and First Round Capital.  Prior to that, Backupify raised  $900,000 in a Seed Round led by First Round Capital and was joined by Betaworks and some individual investors, including Chris Sacca and Jason Calacanis.  To date, Backupify raised a total of $10.4 million in funding.