Storage software company PernixData raises $35 mln from Menlo, KP, Benioff and others

Menlo Ventures led an oversubscribed $35 million Series C funding round for PernixData, a San Jose, California-based provider of software that virtualizes server-side flash to enable scale-out storage performance. The round also included Salesforce CEO Marc Benioff, Silver Lake co-founder Jim Davidson and Seagate CEO Steve Luczo. Previous investors Kleiner Perkins Caulfield and Byers, Lightspeed Venture Partners an individual investors Lane Bess, Mark Leslie and John Thompson also participated. The company has now raised $62 million since it was founded two years ago. As part of the round, Menlo Managing Director Mark Siegel has joined the board in an advisory role.

PRESS RELEASE

PernixData Raises $35M in Series C Financing, Closes First Fiscal Year with Record Revenue

  • Menlo Ventures Leads Oversubscribed Round with New Individual Investments from Marc Benioff, Jim Davidson, and Steve Luczo
  • Company adds Mark Siegel of Menlo Ventures to Board; Appoints Former Dell GM, Mike Arterbury, as VP of Business Development

SAN JOSE, Calif. – August 20, 2014 – PernixData, the leader in server-side storage intelligence, announced today that the company has raised $35 million in Series C funding.  Menlo Ventures led the oversubscribed round, which also included new individual investments from Marc Benioff (chairman and CEO of salesforce.com), Jim Davidson (Co-Founder, Managing Partner and Managing Director at Silver Lake), and Steve Luczo (chairman and CEO of Seagate Technology).  Previous investors Kleiner Perkins Caulfield and Byers, Lightspeed Ventures, Lane Bess, Mark Leslie and John Thompson also contributed to the Series C round, which now brings the total investment in the company to $62 million.

On July 31, 2014 PernixData also closed its first full fiscal year, which had 42 percent quarter- over-quarter revenue growth and revenues that set a record amongst enterprise infrastructure software companies.

“PernixData has experienced an absolutely amazing year with groundbreaking product features, 160 percent growth in world-wide headcount, extensive industry accolades, top tier funding, and revenues that were 50 percent higher than any other enterprise software company during its first year of sales, handily beating the previous record in this space,” said Poojan Kumar, CEO and co-founder of PernixData.  “This underscores the enormous demand for our unique decoupled storage architecture. We will use this revenue momentum and the new round of funding to execute on our next phase of product vision and deliver FVP globally to all virtualized data centers.”

“We are witnessing a fundamental shift in storage design where performance is decoupled from capacity using PernixData FVP software and server side flash,” said Steve Luczo, chairman of the board and CEO of Seagate Technology. “This brings unparalleled performance and scalability to virtualized applications, and makes flash technology a strategic component of tomorrow’s software defined data center.”

“The initial journey to virtualization took many years and resulted in a fundamental shift in data center design and operations,” said John W. Thompson, CEO of Virtual Instruments and chairman of Microsoft. “It is really exciting to see this next phase of acceleration as more companies of all sizes embrace the unique technology of PernixData to improve overall application performance in their software defined data centers.”

Leading the Decoupled Storage Revolution
PernixData is fundamentally changing how storage is designed and operated in virtual data centers. The company’s flagship product, PernixData FVP software, virtualizes server flash and RAM to enable scale-out storage performance that is independent of capacity. No changes are required to VMs, servers or primary storage, ensuring maximum performance of all virtualized applications in a seamless, scalable and cost- effective manner.

•    Revolutionary Product.  PernixData first began shipping FVP software in August of 2013.  In a short period of time, the product established itself as the premier platform for storage acceleration with unique features like write acceleration, clustering, and installation within the hypervisor.  In April 2014, FVP also became the first acceleration solution to run on both flash and RAM, and to support any file, block or direct attached storage.

Today, FVP is estimated to be accelerating approximately 120,000 virtual workloads worldwide.

•    Broad Range of Customers.  PernixData has sold FVP software to approximately 200 companies in over 20 countries, ranging from two to 300+ node deployments.  Customers range from small businesses to large enterprises and global service providers, including well-known names like Tata Steel, Bank of the West, Virtustream, Sega, Toyota and more.  More customer examples can be found here: http://www.pernixdata.com/solutions/case-studies-industry

Approximately 20 percent of PernixData FVP customers made follow-on software purchases during the company’s first fiscal year, with the average follow-on order being twice the original (and typically taking less than 3 months to complete).

•    The Most Industry Awards. PernixData was distinguished this past year with more industry awards (seventeen) than any other enterprise software company.  Specific accolades include two Best New Technology awards at VMworld 2013, Forbes Most Promising Company, Gartner 2014 Cool vendor in Storage, and Infoworld Product of the Year.  A full list of awards can be viewed here: http://www.pernixdata.com/awards

•    World-class Partners.  PernixData has signed almost 250 resellers worldwide in approximately 40 countries.  In addition, the company has a global resale agreement in place with Dell.  On the technology side, the company introduced the PernixDrive program to accelerate the adoption of decoupled software, which has led to various partnerships with leading flash vendors like HGST, Intel, Kingston, Micron, SanDisk, Toshiba, and more.

PernixData Announces New Team Members
As part of this announcement, Mark Siegel, Managing Director at Menlo Ventures, has joined the PernixData board in an advisory role.  Mark’s active investments and board seats include Dropcam, Dstillery, eXelate, Getaround, Invidi, Pluribus Networks, Tintri and Voltage Security. Some of his previous board seats include 3PAR (acquired by HP), Pliant Technology (acquired by SanDisk), RNA Networks (acquired by Dell), BlueGill Technologies (acquired by Checkfree), and Rubric (acquired by Broadbase).

“PernixData FVP is a critical component of the software defined data center,” said Mark Siegel, Managing Director at Menlo Ventures.  “It brings a new level of value to the hypervisor, making virtualization even more strategic to every company’s application, storage and networking plans.”

PernixData has also expanded its executive team with the hiring of Mike Arterbury as Vice President of Business Development.  Mike comes to PernixData from Dell, where he most recently served as General Manager of the Software and Peripherals group.  In his role at PernixData, he will be responsible for creating and nurturing Go-to-Market programs with various technology partners.

A complete listing of PernixData investors, advisors, and management team can be found at http://www.pernixdata.com/company/team

About PernixData™
PernixData is fundamentally changing how storage is designed and operated in virtual data centers. The company’s flagship product, PernixData FVP™, virtualizes server flash and RAM to enable scale-out storage performance that is independent of capacity. No changes are required to VMs, servers or primary storage, ensuring maximum performance of all virtualized applications in a seamless, scalable and cost- effective manner.

Based in San Jose, California, PernixData was founded by virtualization experts and backed by industry luminaries in the software space. For more information, please visit www.pernixdata.com and follow us on Twitter @PernixData.

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