Cloud startup Coraid raises $25 million

Thu Nov 25, 2010 2:08pm EST

Large fields of corn growing in fields in Otisco, Indiana, August 25, 2009. REUTERS/John Sommers II

Large fields of corn growing in fields in Otisco, Indiana, August 25, 2009.

Credit: Reuters/John Sommers II

Related Topics

SAN FRANCISCO (Venture Capital Journal) - Fresh off of its sale of storage provider 3PAR to Hewlett-Packard, Menlo Ventures last week backed Coraid Inc, a cloud-based storage solutions provider.

The Redwood City, California-based company raised a $25 million Series B investment led by Menlo Ventures with participation from Allegis Capital and Azure Capital Partners. Coraid, which develops Ethernet-based storage products, previously raised a $10 million Series A round from Azure and Allegis in late 2009.

As part of the deal, John Jarve, managing director of Menlo Ventures, joined the board of Coraid, which already includes Lara Druyan, a general partner with Allegis, and Paul Weinstein, a general partner with Azure.

Menlo was interested in taking part in Coraid's Series A round last year, but it was still an investor in 3PAR at the time and "we tend not to back companies that are competitive to others in our portfolio," Jarve said.

However, since that first round, Menlo Ventures had a hugely successful exit when HP won the bidding war for 3PAR, agreeing to pay about $2.4 billion for the publicly traded company, or about $33 a share. Menlo Ventures was the largest stockholder in 3PAR, holding 15 percent of the storage solutions provider, or about 9.4 million shares.

"The enterprise data storage sector has been big and successful, and we think Coraid, which already has hundreds of customer accounts, is ready to join the likes of 3PAR, Data Domain, EqualLogix and Spinnaker Networks to be equally as big," Jarve said.

In addition to Coraid, here's a select list of venture-backed companies to raise early stage funding rounds last week:

CONSUMER INTERNET

Yummly

Palo Alto, CA

www.yummly.com

Amount/Round: $1.8 million/seed stage

Investors: Harrison Metal Capital (led), Intel Capital, First Round Capital and individual investors

Details: Operates a food and recipe site with social networking functions.

HEALTH CARE

Tango Health Inc

Austin, TX

www.tangohealth.com

Amount/Round: $3 million/Series A

Investors: S3 Ventures and several individual investors

Details: Provides Web-based Health Savings Account management services. The company, which was founded in 2008, is led by CEO Duncan Van Dusen, who was previously vice president of sales and marketing for Works Inc.

MOBILE COMMUNICATIONS

Retailigence Inc

Palo Alto, CA

www.retailigence.com

Amount/Round: $1.5 million/seed stage

Investors: Draper Fisher Jurvetson, 500 Startups, ZIG Capital and Global Brain Corp

Details: Develops location-based software that connects stores with mobile shoppers. The application works with such location-based services as Google Maps, Foursquare and Gowalla. Retailigence was founded in 2009 as part of the Founder Institute incubation program.

PHARMACEUTICALS

Verastem Inc

Boston, MA

www.verastem.com

Amount/Round: $16 million/A

Investors: Longwood Founders Fund (led), Bessemer Venture Partners, Cardinal Partners and MPM Capital

Details: Develops drugs that target cancer stem cells. Co-founders include Satish Jindal; Longwood Founders Fund Partner Rich Aldrich; Eric Lander from Broad Institute; Piyush Gupta and Robert Weinberg from Whitehead Institute; and Christoph Westphal, who launched Longwood Founders Fund earlier this year after leaving Sirtris Pharmaceuticals.

SOFTWARE

Adaptivity

Charlotte, NC

adaptivity.com

Amount/Round: $3 million/Series A

Investors: Intel Capital

Details: Develops software that helps businesses manage information technology. The funding brings the company's Series A funding round to $10.3 million. Tony Bishop, CEO of Adaptivity, founded the company in 2007.

STORAGE

Coraid Inc

Redwood City, CA

www.coraid.com

Amount/Round: $25 million/Series B

Investors: Menlo Ventures (led), Allegis Capital and Azure Capital Partners

Details: Provides Ethernet storage solutions. The company previously raised $10 million in funding.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.