DataCore Got $30 million in Equity Investment

DataCore Software Corporation, the leading vendor of hardware independent, storage virtualization software, today announced that it has accepted a $30 million equity investment from Insight Venture Partners and Updata Partners.

“Insight Venture Partners has built its reputation on finding and investing in companies poised for tremendous success in the industries in which we specialize,” said Jeff Horing, Managing Director, Insight Venture Partners. “DataCore is perfectly positioned as the virtual storage foundation for all server and desktop virtualization platforms, regardless of vendor. We believe that storage virtualization will eventually be as big as server virtualization and that DataCore will be the big beneficiary of this trend.”

“DataCore has gained global customer traction with superior storage virtualization and storage management solutions,” said Barry Goldsmith, General Partner, Updata Partners. “We are pleased to invest in a company that has already had significant impact in its market and is well-positioned for high growth.”

Insight Venture Partners is the leading private equity and venture capital firm focused on the global software and Internet industries. Updata Partners is a leading information technology-focused venture capital firm whose general partners have been active as investors and operators in the IT industry for more than two decades.

“When Insight and Updata approached us, it was clear that they already understood that DataCore has become the storage virtualization and SAN management solution of choice in the server and desktop virtualization space,” said Ziya Aral, Chairman and CTO, DataCore Software. “We are glad to have these two excellent firms as part of the team.”

About Insight Venture Partners
Founded in 1995, Insight Venture Partners is the fastest-growing venture capital firm specializing in software and the Internet. The team is composed of experienced investors and operating executives with more than 150 years of collective experience in these industries, and a capital base of $3 billion to support the companies in which they invest. The company is headquartered in New York City.

About Updata Partners
Updata Partners is a leading venture capital firm that invests in growth stage information technology companies with innovative intellectual property enabling market-leading products and services. Led by an investment team averaging more than 20 years of operational and private equity experience in the technology industry, we seek investments where the combination of our financial backing and operating expertise will accelerate growth. With close to $500 million under management, the firm also selectively provides recapitalization and management buyout financing.

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Insight Venture Partners and Updata Partners are first time investors in DataCore. Among the preceeding ones were Hitachi and Intel.

Since its founding in 1995, Insight Venture Partners has been one of the fastest-growing firm in software and Internet investing. Notable companies in its investment portfolio include: PlateSpin, Parallels, Acronis, ScriptLogic, Quest Software (Vizioncore/Provision Networks), and SolarWinds.

Here are the financial rounds of DataCore since its inception:

1998: $2 million

1998: $6 million (first round)

2000: $35 million (second round)

2001: $37 million (third round)

2004: $7 million (fourth round)

2005: MBO (60% employee owned)

2008: $30 million

The privately-held company doesn't reveal its financial results but annual revenues are between $20 million to $30 million. According to its CEO Georges Teixeira, the company, with 100 employees, is profitable since two years, has 130 reseller partners in the world, including 80 in Europe, 2,000 customers, and have sold 4,000 software licenses. Its biggest customers are IKEA and Axa, but it has only one OEM, NEC Soft.