Storwize, a San Jose, Calif.-based provider of storage data compression solutions, has raised $19 million in Series C funding. Bessemer Venture Partners and Lehman Brothers Venture Partners were joined by return backer Sequoia Capital.
Storwize Inc., the leader in primary storage data compression solutions, today announced it has successfully closed $19 million in funding from new investors, venture capital firms, Bessemer Venture Partners and Lehman Brothers Venture Partners, as well as the Series B investment round leader, Sequoia Capital. The Series C funding will accelerate Storwize's efforts to expand its sales and support organizations, as well as its product management resources, to meet the soaring demand for the company's primary data compression solutions.
The company's innovative primary data compression solutions are successfully deployed to customers worldwide including Fortune 500 companies, international banks and other large enterprises. With this investment, Storwize will significantly increase its sales force coverage in response to worldwide growing customer demand for Storwize solutions following an upswing of recognition and accolades in the industry.
“It is an honor to be supported by three venture firms who have such a level of skills and proven experience. This third round of financing is further validation of the market recognition we are seeing to our leadership in compression solutions for primary storage. It will help extend our capabilities even further in delivering technology that continues to revolutionize storage economics as well as enable us to realize high volume sales,” said Gal Naor, CEO of Storwize.
“The strategy behind our investment in Storwize is to constantly look at partnering with companies that are set to have a dramatic impact on the industry they serve,” said Shmil Levy, Sequoia partner. “Storwize's proven leadership in the primary data compression market will be a difficult act to follow.”
“Storwize successfully addresses the changing economics of enterprise data centers, offering real solutions for enterprise customers who are faced with uncontrolled data growth coupled with soaring operational expenses in today's unstable economic environment,” said Adam Fisher, partner, Bessemer Venture Partners. “The Storwize solution is set to offer significant savings for data center scale environments with not only dramatic savings on disk space but also significant savings on all operational expenses such as power, cooling and space.”
“Storwize is the leading company today offering a proven solution for the primary storage data explosion,” said Stewart Gollmer, managing director in Private Equity and a partner in Lehman Brothers Venture Partners. “The company's deep entrepreneurial pedigree as well as their technology competencies matches our firm's interest in supporting ventures with extraordinary potential.”
The success of Storwize has been acknowledged by industry leading publications throughout the year with the company receiving several prestigious awards. Storwize recently won the Bronze award in the Storage Networking Equipment category of the Storage Products of the Year award by TechTarget, which is the second straight year the company was nominated. This also marks the second straight year Storwize was named “Emerging Tech Dynamo” by CRN magazine. Other honors this year included being named a “Top 10 Startup to Watch” by storage networking website Byte and Switch, and a “Cool Vendor” by Gartner, a leading analyst firm.
Sequoia Capital is one of the largest and well-known venture capital firms in existence. The firm has been an active participant in the inception stages of many of the most influential companies that have built today's IT and networking industries. Sequoia's understanding of industry trends, the business depth of their partners, and the breadth and expertise of their resources have made them among the most respected and successful venture firms in the world. Its high-tech investments include, among others, Cisco Systems, 3Com, AMCC, Apple Computer, Network Appliance, LSI Logic, PMC-Sierra, Vitesse, Yahoo, Isilon, YouTube and Google. For more information, visit http://www.sequoiacap.com/.
About Bessemer Venture Partners
Bessemer Venture Partners is the oldest venture capital practice in the
About Lehman Brothers Venture Partners
Lehman Brothers established a technology venture capital investing effort in 1995. The primary investment objective of Lehman Brothers Venture Partners is to make growth-oriented equity or equity-related investments in privately held companies. Lehman Brothers Venture Partners focuses on making investments in companies capable of turning innovative technology and management solutions into successful businesses. Lehman Brothers Venture Partners currently manages more than $850 million in committed capital. For more information, visit: http://www.lehman.com/im/pe/vc_tech/.
Storwize, Inc. is the leader provider of real-time data compression solutions that dramatically boost storage space on network storage environments. The Storwize appliance provides organizations with additional capacity and associated savings in capital, operational, maintenance and management resources. Storwize appliances are installed between the organization's storage arrays and their network. Designed to work with any storage array it is connected to, the Storwize appliance has been successfully tested for interoperability with leading storage vendors such as EMC and NetApp. Storwize solutions have been shipped to customer sites worldwide. Storwize is a member of the Green Grid. For more information, visit the company's website: www.storwize.com.