November 15, 2010 06:00 ET
Coraid Closes Series-B Investment of $25 Million
Menlo Ventures Leads Round, Joining Allegis Capital and Azure Capital Partners to Support Coraid in Capturing Ethernet SAN Storage Market
REDWOOD CITY, CA--(Marketwire - November 15, 2010) - Coraid® Inc., a leading developer of Ethernet SAN storage solutions with more than 1,200 customers worldwide, today announced that it has closed a $25 million Series-B investment led by Menlo Ventures, one of the largest technology venture funds in the world with over $4 billion under management since inception. All of Coraid's Series-A investors, including Allegis Capital and Azure Capital Partners, also participated in this round of funding.
With this round of funding, John W. Jarve, managing director of Menlo Ventures, is joining Coraid's board of directors. Menlo Ventures was also the largest investor in 3PAR Inc., a leading global provider of Fibre Channel-based utility storage, which was recently acquired by HP for $2.35 billion. Other members of the Coraid Board of Directors include acclaimed entrepreneur and Chairman of the Board Audrey MacLean; Kevin Brown, CEO of Coraid; Brantley Coile, CTO and founder of Coraid; Bob Kavner, former CFO of AT&T and CEO of OnCommand Corporation; Pete Bodine, general partner at Allegis Capital; and Paul Weinstein, founding general partner at Azure Capital Partners.
"Menlo Ventures recognizes that Coraid has a tremendous opportunity to disrupt the storage market, and fundamentally redefine storage economics," said Jarve. "Cloud computing can't reach its full potential without powerful storage, which is currently the most expensive and complex piece of the modern data center. Coraid's innovative Ethernet SAN platform is already changing this equation for over 1,200 customers, eliminating the complexity and performance issues of legacy solutions."
"The technologies traditionally used to present disk storage to servers, Fibre Channel and iSCSI, grew out of the mainframe era and simply aren't up to the job of supporting a cloud infrastructure," said Chairman of the Board Audrey MacLean. "The storage industry has finally admitted that Ethernet is the ultimate platform for storage networking, and Coraid has developed a huge technology lead over the past six years. We believe the addition of Menlo Ventures to the team and our Series-B investment highlight Coraid as a breakout company to watch in the storage market."
Coraid is redefining the economics of storage with high-performance Ethernet SAN solutions. Using Coraid's innovative CorOS™ software and flexible Layer 2 Ethernet networking, EtherDrive® storage arrays enable a scale-out SAN architecture that matches the agility of today's virtualized server environments. Starting at under $500 per terabyte and scaling to multiple petabytes, EtherDrive delivers a five-to-eight times price performance advantage over legacy Fibre Channel and iSCSI solutions. An August 2010 study by ESG Lab validated that Coraid's EtherDrive SRX-Series delivers faster performance than Fibre Channel at approximately 20 percent of the cost, with storage arrays that can be configured in less than two minutes.
"Just as virtualization and x86 processors transformed the server market, Ethernet and scale-out architectures are poised to transform the $25 billion storage market," said Kevin Brown, CEO of Coraid. "This Series-B investment positions Coraid for rapid growth in the coming years, and enables us to accelerate the development of new disruptive technologies. Most importantly, the new funding enables us to provide enterprise-class support to our customers worldwide, and help them take full advantage of Ethernet SAN technology."
Since raising its first $10 million round of Series-A funding in late 2009, Coraid has built out an experienced management team and achieved record growth. The company introduced its high-performance EtherDrive SRX-Series storage arrays and launched a worldwide partner network earlier this year, and recently announced its new on-site Coraid Zero-Hour Support™ offering for rapid remediation of hardware failures.
About Menlo Ventures
Menlo Ventures provides long-term capital and management support to early-stage and emerging-growth companies. Menlo is one of Silicon Valley's oldest venture capital partnerships, and has organized and managed ten venture funds since their inception in 1976. With over $4 billion under management since inception, and a team with over 200 years of collective experience in technology, marketing, sales and general management, they have the resources to support the most ambitious of projects. For more information, visit www.menloventures.com.
About Allegis Capital
Allegis Capital is a seed and early-stage venture capital firm with more than $500 million under management and an investment focus on the digital economy and security. Allegis is renowned for its entrepreneur-centric culture and its active corporate partnering with major multi-national companies to add strategic value and support the growth of the Allegis portfolio companies. The firm's current and legacy portfolio investments include: Coraid, Solera Networks, Symplified, IMVU, IronPort Systems, Ribbit and Shopzilla. For more information, visit www.allegiscapital.com.
About Azure Capital Partners
Azure is a San Francisco-based venture capital firm with over $650 million under management. The firm invests in early stage technology companies that are at the forefront of a transformative opportunity for growth. Azure has invested in and served as trusted advisors to some of the most successful and important technology companies created in the last decade including VMWare, Bill Me Later (acquired by eBay), Calix, Top Tier (acquired by SAP) and World Wide Packets (acquired by Ciena). The Azure team is recognized for industry thought leadership, a broad network of powerful industry relationships and a unique professional investment approach to venture investing. For more information, visit www.azurecap.com.
Coraid redefines storage economics with its breakthrough line of EtherDrive storage solutions. EtherDrive delivers scale-out performance, Ethernet simplicity, and a five-to-eight times price-performance advantage over legacy storage. Designed from the ground up for virtualization and cloud architectures, Coraid solutions have been deployed by more than 1,200 customers worldwide. For more information, visit www.coraid.com or follow Coraid on Twitter at www.twitter.com/Coraid_Inc or LinkedIn at http://www.linkedin.com/companies/769557.
Coraid and EtherDrive are registered trademarks of Coraid, Inc. CorOS is a trademark of Coraid, Inc. All other marks referenced are the property of their respective owners.