History 2005: Venture Capitalists Hand Out Wads of Cash

As the new year begins, storage start-ups have never enjoyed so much financial support from VCs.

We counted 16 new financial funding rounds in under a month and a half, for a total of $216 million, or a quarter of the total recorded for all of 2004, with average financing at the not inconsiderable figure of $13.5 million. Flash in the pan or start of a new trend of infatuation by VCs for the storage industry? It’s probably too early to say… 

Chelsio Communications has completed its 3rd round of financing raising $25 million, bringing the total investment in the 10GbE company to $55 million. 

Revivio, involved in continuous data backup protection appliances, secured $25 million in a 3rd financial round, bringing its total equity funding to date to $55 million.

Incipient has raised $20 million in series C funding. Total investment in the firm, focused on virtualization software to be embedded in directors, now comes to $55 million.

Riverbed Technology secured a 3rd financial round of $20 million, thus raising to date a total of $37 million to push its acceleration appliances for WAN.

Arsenal Digital Solutions announced a $15 million senior debt facility from Wells Fargo Foothill. The company has now raised a total of $101 million since its inception in 1998. It is steadily growing, having recorded in 2004 its 15th consecutive quarter of double-digit compounded annual growth rate. The SSP has added 10 new partners to extend its footprint to 30 data centers in 20 cities WW.

In database accelerator appliances, Netezza has raised $68 million since its founding in 2000, following a recent 4th financial round of $15 million.

Formerly Delta-Tek Research, the Canadian company TimeSpring Software recovered CA$14 million (US$ 11 million) for its 1st financing round. The company was founded originally as an OEM software provider in 1994 for Veritas, HP, before venturing into data protection software

Bocada has pocketed $9.5 million in its 3rd round of financing led by Partech International. Total financing is around $20 million for the backup software company.

In business recovery solution for SMBs, Unitrends Software, created in 1989, has closed a $8.1 million B round of funding.

Another old start-up, NSI Software has raised $7 million, bringing its total funding to $60 million since its inception in 1991.

This article is an abstract of news published on issue 205 on January 2005 from the former paper version of Computer Data Storage Newsletter.