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Funding Valve Is on Low

Venture capital funding is up but it's trickling, not gushing, into the hands of needy storage companies.

IP SAN startup Sanrad announced an $8 million funding round today, and another handful of storage companies should follow in the coming weeks (see Sanrad Closes $8M Round).

Upcoming announcements are expected to be relatively small, like Sanrad's round, compared to funding earlier this year. Companies expected to close deals soon include IntraDyn Inc., MaXXan Systems Inc., and Neustream Inc. Others actively seeking funds are SANchips and Sandial Systems Inc.

Though VC funding is way ahead of last year for storage companies (see VCs Shell Out for Storage), there are indications that the second half of the year won't be as strong as the first half (see It's Raining VC Money).

Only two storage companies received funding last month: Disaster recovery software startup XOsoft closed on $9 million, and advanced switching company StarGen Inc. picked up $8.5 million (see XOsoft Raises $9 Million and StarGen Gets $8.5M in Funding). Both rounds were the fourth for those companies.

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