Solid-state storage system solutions start-up Xtremio Ltd. has expanded its second financing round with a $5 million investment from Lightspeed Ventures. The company had already raised $14 million in the round from Giza Venture Capital, Jerusalem Venture Partners (JVP), and Battery Ventures. XtremIO has raised $21 million altogether, since it was founded in 2009.
XtremIO says that it will use proceeds from the financing to develop its technology and penetrate the market.
Aryeh Margi, a co-founder of m-systems; Shuki Bruck, who founded Rainfinity and sold it to EMC Corporation (NYSE: EMC); and Yaron Segev founded XtremIO. Its CEO is Ehud Rokach. The company has offices in Herzliya and San Jose, California.
The company is developing flash memory-based storage solutions designed to support rapid growth of enterprise data (scale-out storage). The advantage of these systems is their rapid access to stored data compared with standard HDD-based disk storage systems. The systems' disadvantage is their high price, which has prevented a market breakthrough.
The IPO of Fusion-IO Inc. (NYSE: FIO) in June 2011 highlights the sector's potential. The company, which also develops solid-state drive (SSD) technologies, is currently traded at a market cap of $2.7 billion, 40% above its IPO value, and has $200 million in annual sales.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2011
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