Storage virtualization software maker DataCore today announced that it has received a $30 million equity investment from Insight Venture Partners and Updata Partners. No mention is made in the press release of the company’s previous $85 million in VC funding, nor of existing shareholders like Flagship Ventures and New Enterprise Associates.
So I made a call to Jeff Horing, who led the deal for Insight. He says that the round is a combo recap and equity infusion. This means that prior backers – both institutional and individual – generated some liquidity, with many of them remaining minority shareholders. He also says that the deal was not a “cram down,” although acknowledges that the company had some “tougher” rounds of financing a few years back. I assume he’s referring to the tranched-out $43 million in Series D funding, which came at basically the same $120 million post-money valuation as DataCore’s $35 million Series C round in 2000.
Horing adds that DataCore has been profitable for the past two quarters, and that he does not expect it to require additional private equity funding.