Xkoto Inc., a Waltham, Mass.-based provider of data virtualization technology, has raised $3 million in third-round funding. Return backers include GrandBanks Capital and GrowthWorks Canadian Fund. The company has now raised around $13 million in total funding.
xkoto (http://www.xkoto.com), the database virtualization company, today announced that it has raised $3 million in financing from existing investors GrandBanks Capital and GrowthWorks Canadian Fund. xkoto has now raised a total of $13 million since it was founded in 2005.
xkoto will use the funds to build its sales force, accelerate customer acquisition, and continue to enhance its GRIDSCALE database virtualization product. The company experienced record 2008 sales, added several global corporations as customers, and closed the year with 275 percent growth in the fourth quarter.
“We are extremely encouraged by the great progress xkoto has made marketing and selling its GRIDSCALE database virtualization software, as well as the reception the product and company have received from large, multi-national corporations,” said Tim Wright, General Partner, GrandBanks Capital. “Demand continues to grow for solutions that improve the reliability of business-critical applications, and we are excited to be working with a company that is well-positioned to meet this demand.”
“xkoto’s significant DB2 wins combined with a strong entrance into the Microsoft SQL Server market are true indicators of the company’s potential,” said Tim Lee, Senior VP, Investments for GrowthWorks*. “The company ended 2008 with a great deal of momentum and we are pleased to be able to provide additional funding that will build on this success.”
GRIDSCALE virtualizes the database infrastructure, enabling businesses to distribute application load horizontally across multiple instances of commercial databases running on clusters of low-cost hardware, mid-range systems and virtual machines. With GRIDSCALE, businesses can improve application performance and achieve continuous availability for business-critical applications. Visit http://www.xkoto.com/database_virtualization for more information about the benefits of database virtualization.
“2008 was a great year for us on both the customer and industry fronts,” said David Patrick, President and CEO of xkoto. “In addition to the rapid growth in our customer base, we received industry accolades in being named InformationWeek’s startup company of the year. We enter 2009 with a great deal of optimism and look forward to continuing our strong relationships with GrandBanks and GrowthWorks.”