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Storage Startups Top $500M

Storage networking startups have taken over half a billion dollars in venture funding since the start of 2004 -- and the year's not over yet.

A search of announcements run on Byte and Switch over the last 11 months reveals that 27 companies have received over $500 million, many in double-digit awards.

This sum exceeds the total for all of 2003 given by at least one formal VC survey, the Quarterly Venture Capital Report from Ernst & Young and VentureOne. That survey put total venture funding for data storage startups for the first half of 2004 at $225.8 million (see VCs Shell Out for Storage).

At this rate, storage funding for 2004 could wind up higher than these analysts have tallied since 2001, when it hit a boom-time high of $671.65 million.

Table 1: Storage Networking Startups 2004

Company Latest funding Round Total raised Product
Acopia Networks $25M 3rd $65M Clustered file system
Ario Data Networks $17M 4th $34.3M SATA-II and SAS controllers
Aristos Logic $12M 4th $65M RAID processors
Astute Networks $15M 3rd $37.8M IP storage chips
Candera $12M 3rd $59M
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