Egnyte Secures $10 Million in Financing

Egnyte, provider of cloud file server solutions, has closed a $10 million round of venture capital Series B financing led by Kleiner Perkins Caufield and Byers (KPCB) with additional support from previous investors Floodgate Fund and Polaris Venture Partners. Egnyte will use this new investment to expand into international markets and increase domestic engineering, sales and marketing efforts.

Egnyte is experiencing growth month over month, having quadrupled its customer base in 2010. The company is positioned to build on its strength of a pure play, enterprise-friendly, non-disruptive cloud storage solution.

"A profound shift is underway in the enterprise toward adopting cloud-based applications and infrastructure. Egnyte’s unique hybrid approach is poised to be the leader for enterprise class, cloud-based storage," said Matt Murphy, a partner at KPCB. "We’re thrilled to be backing the team at Egnyte. Their product vision is impressive, and they’ve hit the market at exactly the right time with a critical solution that addresses enterprises’ need for fast, ubiquitous, device agnostic data access."

Egnyte’s hybrid cloud solution allows organization from ten users to tens of thousands of users to deploy a corporate-wide file storage, sharing and backup solution that combines the speed and security of a local file repository with the access, flexibility and scalability capabilities of cloud storage. As users become more mobile and distributed, Egnyte’s hybrid solution gives access to business files from multiple locations. The cloud service can be integrated directly into existing file storage infrastructures managed by existing directory services, eliminating the need for additional infrastructure investment.

"Our phenomenal growth in the past few years – specifically in 2010 – enabled us to significantly raise the bar for business-class cloud-based infrastructure solutions," said Vineet Jain, CEO of Egnyte. "This additional capital provides us an incredible opportunity to continue this momentum in 2011 by reaching new markets in the U.S. and internationally."

Egnyte recently announced it surpassed milestones in adoption with more than five billion files currently stored in Egnyte’s cloud network and more than 2 million file operations in a single 24-hour window – an average of more than 3,000 file uploads and downloads per minute. To continue to drive future growth, Egnyte introduced a channel program to empower thousands of partners to sell Egnyte services and capitalize on the explosive growth in SME cloud adoption.