Pivot3 Got $14 Million in Financing Round

Pivot3, Inc. has closed a financing round of more than $14 million in new investment and working capital to fund the company’s growth and its drive to sustained profitability in 2014.

The round consists of additional equity funding as well as other financial support from investors and key business partners.

The equity funding was led by InterWest Partners and Mesirow Financial Capital Partners, and included additional funding from Focus Ventures, Lightspeed Partners, Silver Creek Ventures, Northleaf Ventures and Wilson Sonsini. Comerica Bank also provided important financial support.

Founded in 2003, Pivot3 pioneered the development of purpose-built virtualized storage appliances for the surveillance market. Since that time, the company has continued to strengthen its surveillance product line, most recently with the addition of the vSTAC Edge appliance for distributed environments.

The company partners with Dell OEM solutions for manufacturing, global service and support to bring its product to market.

Pivot3 also leverages its own core technology platform to develop converged storage and compute hardware appliances that deliver simplicity, scalabiity and savings to virtual desktop environments. Today, It accounts for more than 600 customers in industries ranging from corrections and education to government, healthcare and retail.

“This financing is a testament to the innovation and great momentum we have established for our storage platforms in both surveillance and VDI,” said Bill Galloway, CEO, Pivot3. “This latest round of financial backing puts Pivot3 in a stronger position to actively pursue opportunities in our target markets that support long-term revenue and earnings growth.”

The company recently closed a record second quarter, which included a $2.7-million video surveillance storage deal in Central America. It also experienced large wins in the transportation, government and municipal environments. These markets, in particular, have seen an influx in the deployment of video surveillance cameras due to heightened security needs.

In addition, the company has recently experienced a quarter on quarter doubling of growth in the virtual desktop market with wins in healthcare, education and the public sector.

Earlier this year, Pivot3 launched its Professional Services programs, and services revenues have seen steady growth.

The Pivot3 vSTAC family of appliances delivers converged, highly available shared storage and virtual server appliances that are designed for virtual server and data workloads. TheC appliances run on enterprise Dell hardware that eliminates the complexities, constraints and high costs associated with legacy shared storage and converged computing alternatives.