Fresh off of its sale of storage provider 3PAR to Hewlett-Packard, Menlo Ventures is backing Coraid Inc., a cloud-based storage solutions provider.
The Redwood City, Calif.-based company announced this morning that it has raised a $25 million Series B investment led by Menlo Ventures with participation from Allegis Capital and Azure Capital Partners. Coraid, which develops Ethernet-based storage products, previously raised a $10 million Series A round from Azure and Allegis in late 2009.
As part of the deal, John Jarve, managing director of Menlo Ventures, has joined the board of Coraid, which already includes Lara Druyan, a GP with Allegis, and Paul Weinstein, a GP with Azure.
Menlo was interested in taking part in Coraid’s Series A round, but it was still an investor in 3PAR at the time and “we tend not to back companies that are competitive to others in our portfolio,” Jarve says.