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Top Storage Funding Deals 2007

It's been a year of dramatic growth for the storage networking industry. Nowhere is this more evident than in the number of startups who got funding rounds in the double digits in 2007.

Table 1:

Startup Product/service area Latest funding Total funding Investors
Atempo Backup software with CDP $22 million Series B $38 million Intel Capital, Steelpoint Capital, Ridgewood Capital
Copan MAID systems $32.4 million Series D $88.4 million Battery Ventures, Austin Ventures, Globespan Capital Partners, Pequot Ventures, Credit Suisse, Gold Hill Capital, Presidio STX, NTT Leasing Capital
Desktone Desktop virtualization $17 million Series A $17 million Citrix, Highland Capital Partners, SoftBank Capital, Tangee International
Exanet Clustered NAS $18 million Series C Between $40 million and $60 million Coral Capital Management, Evergreen Venture Partners, Intel Capital
ExaGrid Systems Disk-based backup appliance with de-duplication $20 million Series C $65 million Lehman Brothers Venture Partners, Highland Capital Partners, Sigma Partners
Expand Networks WAN optimization $21 million Series F $74 million Vertex Venture Capital, Discount Investment Corp., Tamir Fishman Venture Capital, Challenge Fund-Etgar
Force10 Networks 10-Gbit/s Ethernet switching $113 million Series F About $400 million 43 investors
Mimosa Email archiving software $17 million Series C $34.5 million Mayfield Fund, Clearstone Venture Partners, August Capital, JAFCO Ventures
ONStor Clustered NAS $27 million Series D About $100 million Sand Hill Capital, Foundation Capital, ComVentures, Worldview Technology Partners, Mayfield Fund
Sepaton VTL with de-duplication $22 million Series E $60.5 million HarbourVest Partners, Jerusalem Venture Partners, Menlo Ventures, Valhalla Partners
Xiotech Clustered disk arrays $40 million Series B-1 N/A Steve Luczo, chairman of Seagate; Oak Investment Partners

While storage firms still represent a fraction of total IT funding by VCs, analysts have noted that the range of late-stage deals reflects that more companies are going public in the sector than ever before. (We'll be covering this year's storage IPOs in a related upcoming article.)

A key characteristic of this year's late-stage funding deals is their size. Since January, we've reported funding news on over 25 storage-related IT firms, representing total funding of over $550 million. Of that, more than half represented awards of $20 million or more.

This money's pouring into firms in a number of storage-related fields, most notably virtualization, disk-based backup with CDP and/or data de-duplication, email archiving, MAID, and high-speed storage interconnects. Below, in ascending order, we take a closer look at the biggest storage-related VC funding stories of 2007:

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