History 2002: Quantum Invests in Storage Networking

It was 2 years ago when Quantum decided to invest in new storage technologies and storage businesses with the commitment of $100 million for a new wholly-owned subsidiary, Quantum Technology Ventures or QTV.

QTV’s investment in StoragePoint.com, an online storage provider, was also announced at the same time.

The investment arm of the DLT manufacturer is mainly interested in funneling money to start-ups involved in storage technologies and systems, of course, but also supports business activities relating to the alliance of storage with networks, notably storage management software and technology to secure sensitive data.

To date, we have listed 18 companies in which the firm placed funds, including at least 12 start-ups involved in storage or storage-related products.

Jim Schraith, formerly executive VP of WW sales and corporate marketing at Quantum, served as president of the new venture capital group.

Today, QTV’s team boasts 3 VP and MDs: Maury Domengeaux, who previously worked for Iomega before becoming VP marketing of Quantum’s NAS division; Randall Meals, a former COO of Nishan Systems; and Steve Schlossareck, who served as Quantum’s senior director of corporate development.

QTV is also availing itself of 4 advisors: co-founder Jim Schraith, who sits on the boards of Semtech, SonicBlue, Acies Networks, enScaler, VisualCalc and Y-Media; Luciano Daile, an alumnus of Meridian Data, who is now CTO of Quantum’s NAS division; Joel Harrison, a storage industry veteran who worked his way through HP and Shugart Associates before becoming a co-founder of Quantum in 1980; lastly, Shmuel Shottan, currently CTO for BlueArc, who also spent time at Meridian Data before Quantum.

Based in Santa Clara, CA, QTV releases next to no information about its activities, like most venture capital concerns, and Maury Domengeaux and Steve Schlossareck did not reply to our email requests for information.

What we do know, thanks to documents filed by Quantum with the SEC, is that the manufacturer has channeled $50 million in funding to QTV during the FY01 and FY02, ending in March, of which $29 million has been invested in equity positions.

Although they both invest sometimes in the same start-ups, QTV is not to be confused with neither Quantum Technology Partners, nor other investors with the name of Quantum Ventures and Quantum Venture Partners.

This article is an abstract of news published on issue 169 on February 2002 from the former paper version of Computer Data Storage Newsletter.