ExaGrid Systems Inc., a provider of disk-based backup solutions with byte-level data de-duplication, has raised $20 million in new VC funding. Lehman Brothers Venture Partners led the round, and was joined by return backers Highland Capital Partners and Sigma Partners. The company has now raised over $65 millon in total VC funding since 2002.
ExaGrid Systems, Inc. (http://www.exagrid.com) the leader in cost-effective and scalable disk-based backup solutions with byte-level data de-duplication, today announced that it has received an additional $20 million of funding led by new investor Lehman Brothers Venture Partners, the venture capital group of Lehman Brothers, the global investment bank. The round, which also includes current investors Highland Capital Partners and Sigma Partners, supports ExaGrid’s expansion of sales and marketing activities in North America, Europe and Asia, and is expected to fund ExaGrid to cash positive status.
ExaGrid’s Disk-based Backup system is a turnkey, plug-and-play solution that works with customer’s existing backup applications and enables faster and more reliable backups and restores. Customers report that backup time is reduced by 30 to 80 percent over traditional tape backup. ExaGrid’s byte-level data de-duplication technology and most recent backup compression, coupled with high-quality SATA storage, reduces the amount of disk space needed by a range of 10 to 50:1 or more, resulting in a price about the same as tape, and a fraction of the price of standard disk storage.
“ExaGrid is pleased that a top-tier investor such as Lehman Brothers has recognized our growing success,” said Bill Andrews, president and CEO of ExaGrid. “This additional capital, combined with a 40 percent quarter over quarter compound growth rate and two recently awarded patents for our best-in-class disk-based backup system, provides the fuel for continued global expansion.”
“Lehman Brothers invests in emerging market leaders who have established themselves with clear execution of their vision and validated the demand for their product with a stable of happy customers,” said Brian Paul, Managing Director at Lehman Brothers. “ExaGrid’s unique approach to disk-based backup with post-process byte-level data de-duplication and a grid-based architecture for scalability is clearly giving customers what they need as they move from tape to disk for backup. We are excited to participate in the company’s ongoing success.”
In addition to Lehman’s participation in the funding round, Mr. Paul will join ExaGrid’s board of directors.
About Lehman Brothers
Established in 1995, Lehman Brothers Venture Partners (“LBVP”) targets mid to later-stage venture capital investments in companies capable of turning innovative technology and management solutions into successful businesses. LBVP is managed by a team of partners located in Menlo Park, California and Boston, Massachusetts. Lehman Brothers Venture Partners is part of Lehman Brothers’ Private Equity business. Lehman Brothers’ Private Equity, started in 1984, has assets under management of more than $22 billion and consists of 18 different fund strategies across six asset classes: merchant banking, venture capital, real estate, fund-of-funds, credit and infrastructure.
Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers’ services, products and recruitment opportunities, visit the Firm’s Web site at www.lehman.com.
About ExaGrid Systems, Inc.
Headquartered in Westborough, Massachusetts, ExaGrid is the leader in cost-effective and scalable disk-based backup solutions with byte-level data de-duplication. A highly scalable system that works with existing backup applications, the ExaGrid system is ideal for companies looking to quickly eliminate the hassles of tape backup while reducing their existing backup windows. ExaGrid’s patented approach minimizes the amount of data to be stored by providing standard data compression for the most recent backups along with byte-level data de-duplication technology for all previous backups. Customers can deploy the ExaGrid system at a primary site and at a second site to supplement or eliminate offsite tapes with a live data repository or for disaster recovery. For more information, contact ExaGrid at 800-868-6985 or visit www.exagrid.com.