Pure Storage Raises $225 Million, Waits for IPO

Pure Storage, Inc., an all-flash enterprise storage array company, has closed a $225 million Series F funding round, bringing the company to a valuation of over $3 billion.

The round included contributions from previous public market investors including T. Rowe Price Associates, Inc. and Tiger Global and new investor, Wellington Management Company. The round also included participation from prior venture capital investors Greylock Partners, Index Ventures, Redpoint Ventures, and Sutter Hill Ventures.

The new funding brings the company’s total capital raised to $470 million to date, and will support the continued acceleration of its market trajectory and international business expansion through increased investments in engineering, sales, marketing and channel partner enablement, to meet global demand for its FlashArray.

“This financing at a $3 billion pre-money valuation is a huge milestone for Pure Storage,” said Scott Dietzen, Pure Storage, CEO. “Yes, it reinforces the health and standout growth of our business to date, but more importantly, the disruptive potential of an all-flash array that costs less than disk going forward. In 2014, no one should be buying mechanical disk to run databases or VMs. Our additional funding ensures that many more businesses will get the ten-fold performance acceleration and power savings of Pure Storage. With our top-quality investors and partners, Pure is well positioned for long-term independence and ultimately to lead the ferociously competitive storage market as we leave the mechanical legacy behind.”

Pure Storage remains a growing storage company, with over 700% Y/Y growth. Over the past year, Pure Storage has consistently achieved 50% sequential quarterly growth, and continued international expansion, opening new offices across four continents.

In 2013 the company grew its global customer base by 650% and crossed a go-to-market tipping point, shipping its 1,000th FlashArray to customers worldwide since inception.

Pure Storage’s commitment to operating as a channel-centric organization has resulted in a threefold increase in channel productivity in the last year, through a multi-tiered network of more than 200 partner organizations.

Additionally, Pure has received accolades for its channel enablement programs and leadership including a 5-Star rating in the CRN 2014 Partner Program Guide for the company’s P3 Partner Program and a 2014 Channel Chief Award.

Pure Storage has recruited talent and bolstered its global go-to-market infrastructure with key executive hires across sales and operations, delivering on its mission to pioneer the all-flash future for storage.

Most recently, Pure Storage appointed Kevin Delane as VP of global alliances and business development to lead the company in developing key strategic channel and technology partnerships. As a veteran of the enterprise storage industry, he brings decades of sales and go-to-market experience to the company. He previously held executive leadership roles at IO and EMC.

Allen & Company LLC served as Pure Storage’s financial adviser and assisted in the closing and terms arrangements of this funding round.