Funding Talk: Part II

VC-funded must mean VC-muzzled

February 20, 2008

2 Min Read
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Okay, maybe it's me. But when a storage startup gets new funding, isn't that something to talk about?

It seems not. Friday's announcement of a $45 million funding round for Agami sounded like great news, and it raises plenty of questions. But I hope you have better success tracking down the company spokespeople than I have.

Calls and emails to Agami and its PR folk at first raised no answers at all. Persistence resulted in getting some abrupt answers by phone and a "We're working on it!" cold shoulder by email.

Clearly, Agami doesn't want to discuss its funding. At least not with yours truly.

It was eerily reminiscent of Caringo's announcement of funding two weeks back. In that case, the company refused to reveal the amount funded. All the world needed to know was that money had been appropriated for the startup's needs, thank you very much.When companies release public statements and then back off, the message I get is that the press release isn't the full story. In Agami's case, at least one industry source, who asked not to be named, speculates that Agami's huge round may be contingent on the firm's reaching specific sales milestones. "It's not really like money in the bank," the source says.

Another consideration: Big money brings big obligations to investors, and a certain loss of freedom, such as freedom of speech. VCs are a traditionally close-mouthed lot, mistrustful of the press. And the bigger the stakes, the weirder things get.

It's going to be interesting watching how these latest funding rounds unfold. Maybe the next startup funding announcement will really be just that.

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  • Agami Systems Inc.

  • Caringo0

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