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LeftHand Palms $25M

LeftHand Networks Inc.
picked up $25 million in funding today, as it aims for profitability now that the IP SAN market it helped usher in is gaining steam (see LeftHand Secures $25M).

The round brings LeftHands total funding to $75 million, and CEO Bill Chambers says he doesn’t expect to go back for more.
“This will be our final round of funding,” Chambers says. [Ed note: This Chambers denies any ties of blood or influence with another, better known, Chambers in the tech field.] “This provides the business with all of the capital it needs.”

Chambers plans to expand LeftHand’s sales and development teams. He expects to grow the census from 125 employees to 150 by the end of the year. He says LeftHand has more than 500 customers and 2,000 of its systems in production. LeftHand recently expanded its sales into Europe, and Chambers plans to make a push into Asia with the new funding (see LeftHand Makes Headway Into Europe).

But the main goal of the round is to take LeftHand to profitability -- even though LeftHand execs said the same thing after their last round in 2003 (see LeftHand Snatches $20M).

In its defense, the startup was ahead of the IP SAN curve back then. Although it started shipping an IP SAN in 2002, the market didn’t really form until last year (see LeftHand Offers IP SAN, Startups Look to iSCSI Surge and IP SANs Are Sizzling). Now IDC

forecasts IP SAN revenues will reach $2.7 billion by 2008 -- up from $113 million in 2004.

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