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SAN Startups on the Block: Page 4 of 4

Founded in September 1999, Zambeel has received $65 million to date from Kleiner Perkins Caufield & Byers, New Enterprise Associates (NEA), Integral Capital Partners, Amerindo Investment Advisors Inc., and other investors.

Life in the startup lane isn't easy, says Dan Tanner, director of storage research at Aberdeen Group. "Any startup must gain its first customer and make a name for itself... That is difficult when the startup's offering is aimed at mission- or enterprise-critical niches."

Adds Tanner, "Chief information officers bet their jobs or their careers on the choices they make and can be expected to be very conservative and risk averse. And operating in tough economic times like the present makes the hill even steeper for startup vendors."

All in all, it's a dismal time for those startups that haven't got the customer traction and are running out of cash. And now it seems their VCs are unwilling to step in to bolster their funds -- which is never a good sign.

Jo Maitland, Senior Editor, Byte and Switch