VeloBit, Inc. Announces Series A Financing that Funds Delivery of an Order-of-Magnitude Improvement in Storage Price-Performance
Vendor emerges from stealth with a software solution that allows customers to easily deploy Solid State Disks with no changes to their applications or storage systems.
Boxborough, Mass – June 7, 2011 – VeloBit, Inc., a developer of software that delivers an order-of-magnitude improvement in storage price-performance, emerged from stealth and announced a Series A financing that funds introduction of VeloBit's first products and an expansion in sales and marketing. VeloBit is pioneering a new approach that can be used with any Solid State Disk (SSD) to deliver industry-leading performance at a lower cost. The solution allows customers to deploy SSD without changing their applications or primary storage, thus preserving their existing investments in data protection and storage management.
"The whole solid state market is coming alive right now, but adoption is still constrained as many users are trying to figure how to 'optimally' deploy the available technologies," said Mark Peters, Senior Analyst at the Enterprise Strategy Group. "VeloBit's software approach is intriguing as it flexibly addresses the two key elements of 'optimally' - which are to keep cost and complexity low - and should therefore resonate with users seeking a pragmatic route to enhancing the performance and economics of their storage environments." James E. Bagley, Senior Analyst at Storage Strategies NOW, added "Velobit's technical approach can significantly change current price/performance assumptions for solid state drive applications."
Fairhaven Capital and Longworth Venture Partners led the financing. As part of the financing, Paul Margolis, a General Partner at Longworth Venture Partners and Rick Grinnell, a General Partner at Fairhaven Capital, joined VeloBit's board of directors. "The market for enterprise SSD has enormous potential and the VeloBit team is very strong and experienced," said Margolis. "We were drawn to the all-software nature of VeloBit's solutions, which will yield cost advantages in product and distribution. In addition, VeloBit software can be bundled easily with other products, so the company will have many partnership opportunities."
Rick Grinnell commented, "We thoroughly researched the enterprise SSD market before investing in VeloBit," said Grinnell. "The VeloBit solution stands out for its price-performance and its ability to fit seamlessly with a customer's existing infrastructure. We were also drawn by the breadth and depth of the research at VeloBit. They have significant innovations in three of the most important areas in the storage industry – data compression, data tiering, and caching."
"We are delighted to have Longworth and Fairhaven join our team," said Duncan McCallum, CEO of VeloBit. "We had multiple options for our over-subscribed Series A. We chose Fairhaven and Longworth because they have a deep understanding of the storage market and our business, deep reserves to support our future growth, and a breadth of connections."
VeloBit is currently in private beta. Please visit www.velobit.com for more information on the VeloBit Early Access Program, to read the VeloBit blog, or to subscribe to VeloBit news.
About Fairhaven Capital Partners
Based in Cambridge's Kendall Square, Fairhaven Capital is a venture capital fund dedicated to a thesis-based approach to investing in North American technology companies. This approach focuses investment efforts on markets where emerging companies and technologies can create significant value in three to five years. The Fairhaven team is focused on themes in the consumer, enterprise, financial services, materials, media infrastructure and security markets. Fairhaven is currently investing out of its second fund of $250 million. For more information go to www.fairhavencapital.com.
About Longworth Venture Partners
Longworth Venture Partners is a Boston-based venture capital firm that invests in early-stage software, internet and media companies. For over twenty years, the Longworth team has founded, built and led investments in some of the most innovative and successful technology companies. The firm combines a proven track record of entrepreneurial and operating success with top venture investing performance to support entrepreneurs in building the next generation of technology leaders. For more information go to www.longworth.com.
VeloBit, Inc. develops software that delivers an order-of-magnitude improvement in storage price-performance. VeloBit is pioneering a new approach that can be used with any Solid State Disk (SSD) to deliver industry-leading performance at a lower cost. The solution allows customers to deploy SSD without changing their applications or primary storage, thus preserving their existing investments in data protection and storage management.
An experienced team of storage industry experts and entrepreneurs founded Velobit in September 2010 to commercialize inventions in caching, data compression and data tiering. The company is headquartered in Boxborough, MA and backed by Longworth Venture Partners and Fairhaven Capital. To learn more, visit www.velobit.com.
Duncan McCallum, CEO