Old Start-Up BlueArc Closes $20 Million of New Funding

BlueArc Corporation has closed $20 million of new funding led by Investor Growth Capital (IGC), the wholly-owned venture capital arm of Stockholm-based Investor AB, known for investments in growth-oriented companies in information technology and healthcare industries. The round was also supported by 16 existing investors who see continued value in BlueArc’s business objectives and vision for the storage industry.

"After extensive research and diligence with BlueArc, their customers and industry experts, it’s clear that BlueArc has a significant growth opportunity and the demonstrated ability to grow faster than its market," said Jose Suarez, managing director at IGC. "BlueArc is helping customers solve critical storage and data management challenges with innovative solutions in an industry that continues to see explosive growth in the amount of data that must be managed. We believe that the company represents a tremendous investment opportunity for IGC."

"This round of funding enables us to take advantage of the increased storage market opportunity and accelerate the growth and momentum we’ve seen over the past year," said Mike Gustafson, CEO of BlueArc. "Since returning to growth a year ago, we’ve shown a tremendous increase in new customers, improved profitability outlook, and expanded product and solution offerings. This funding will help us to further ramp development and allow us to increase headcount and strategic investment in all areas, including engineering and customer facing sales and marketing."

"We originally approved a $20 million round of funding, but given strong investor interest, we decided to increase the round, which is now over-subscribed," said Rick Martig, BlueArc CFO. "We are extremely pleased with the support of our insiders and IGC’s participation."