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InfiniCon Corrals $15M Round

If you thought InfiniBand was already dead and decaying, take another look at InfiniCon Systems Inc. The IB startup announced today that it has snagged another $15 million round of funding, bringing the total investment in the company to $48 million (see InfiniCon Lands $15M Series C).

Leading InfiniCons third funding round was Bay Partners, which also led the company's $26 million B round in February last year (see InfiniCon Lands $26M). Existing investors Arch Venture Partners, W Capital Partners, and A.G. Edwards Capital also participated in the round, joined by new investors including ChevronTexaco Technology Ventures LLC.

"This round takes us through most of '05, and there’s a very good chance that we will not need another one," says InfiniCon CEO Chuck Foley. The company has been working on securing its latest round since June, he adds.

While VC funding for storage startups has recently been picking up, $15 million is quite a feat for any company in today’s drab economy (see The Billion-Dollar Slump and Report: Most Storage Startups Flop).

And for a startup with the word “InfiniBand” in its mission statement, it borders on a miracle. A couple years ago, the high-speed, low-latency technology was heralded as the next big thing, but today InfiniBand has clearly lost its luster (see our report on Whither InfiniBand?).

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