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Agami Plots Upgrade

NAS startup Agami Systems has picked up a quick $11 million to help push its next release out the door.

Hercules Technology Growth Capital provided the money in debt financing to go with $38 million in VC funding Agami raised over two past rounds.

The debt financing may merely be a bridge until Agami completes a third round of funding, although VP of product marketing Paul Speciale says the firm still hasn't used up the $13 million it picked up in its B round last year. He describes the new funding "like a home equity line of credit." Agami can take the money as needed, but the funding does not change the company's valuation, and Hercules does not receive an equity stake in the company.

"It takes lot of time and energy for a company to do an equity round," Speciale says. "It can tie you up for two months. This was an expedited process. It's a couple of weeks of work versus a couple of months work. And this leaves our options open for Series C funding later this year."

Speciale says Agami plans to add about 20 employees to its current headcount of around 100 by the end of the year. Agami is planning a new release of its NAS servers in early 2007 that adds universal namespace and lets customers pool storage across boxes, which alleviates their current lack of scalability. Agami's biggest current system, the AIS6000, holds 24 TBytes, but you can't cluster Agami appliances. (See Agami Systems.)

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