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Chelsio Chalks Up $25M

Chelsio has clinched $25 million in Series E funding as the 10-Gbit/s vendor attempts to snare a raft of new server and storage OEMs.

The round, which brings Chelsio's total funding to $92 million, was led by Investor Growth Capital and included previous investors New Enterprise Associates, Invesco Private Capital, Horizon Ventures, and LSI Logic.

Chelsio has been touting its 10-Gbit/s adapter cards at OEMs since 2004, racking up some 33 customers, according to CEO Kianoosh Naghshineh. "Our product is in the channel, but now it's time to build the front end of our company and our sales and marketing team," he says. "We have a hiring plan in place to recruit very heavily in sales, marketing, and software."

With the Series E round burning a hole in his pocket, the exec expects to add 30 more bodies to Chelsio's 64-strong workforce over the next 12 months in anticipation of more OEM deals. "Fifty companies are in evaluation and 40 more are engaging with us," he says, but he declines to reveal the identities of Chelsio's OEM partners.

Rival vendor Neterion is much more forthcoming about its partnership progress, and has already announced deals for its adapter cards with HP, IBM, and EMC.

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