New investor Sequoia Capital led the round, which brings Netezza's total funding to date to $53 million. Also participating in the round were previous investors Battery Ventures, Charles River Ventures,Matrix Partners, and Orange Ventures.
Netezza's large cash injection indicates that the VC funding wheels are starting to turn again, and it's also a blow to naysayers of such "god box" approaches (see God is Dead and God Goes Down to the Crossroads). While wrapping multiple functionalities together in a huge appliance has sent more than one company spiraling into oblivion since the bubble burst a couple years ago, Framingham, Mass.-based Netezza has landed not only funding but also customers for its box.
"I think it's a proof point that there is interest out there," says IDC analyst Dan Vesset. "They're hitting a market where the data volumes are increasing substantially, and I think the investors are capitalizing on that."
The company has already bagged five paying customers for its appliance, including database marketing services firm Epsilon (see Netezza Breaks Up the Family). Other customers include telecommunications companies and financial services institutions.