SAN FRANCISCO Aug 27 Nutanix, which builds data
infrastructures for companies, has raised $140 million in
another funding round, which valued the firm at $2 billion, the
firm said on Wednesday.
That price tag puts it into an elite group of venture-backed
companies with valuations that until recently were largely
beyond the reach of startups.
Investments came from Fidelity Investments and Wellington
Management, according to a person familiar with the situation,
underscoring the increasing eagerness of mutual funds to take
stakes in the largest private companies well before potential
initial public offerings.
Neither Fidelity nor Wellington responded to requests for
Nutanix did not give details of how it came to the $2
billion figure, or what percentage of the company the $140
"Our goal was to really build a relationship with
institutional buyers," said Dheeraj Pandey, the Nutanix chief
executive officer. "What results out of that is a much bigger
IPO," not just because of the relationships but because the
funding round gives the firm more time to grow as a private
Pandey said he was eyeing an IPO sometime next year, or
possibly 2016, depending on market conditions.
The latest investment came a few months after an investment
of $101 million from Riverwood, Khosla Ventures, and others in
Before the latest round, Nutanix had raised over $170
million from venture firms including Battery Ventures, Blumberg
Capital, SAP Ventures, and Lightspeed Venture Partners.
Nutanix, founded in 2009, builds server and storage systems
and competes with older companies like Hewlett-Packard Co
, IBM and EMC Corp. Its customers include
Fidelity and Wellington both invested in transportation
service Uber's recent $1.2 billion funding round, which valued
the company at more than $18 billion.
Other startups worth more than $1 billion include payments
company Stripe, online home-furnishings company Wayfair and
enterprise-data management company Cloudera.
(Reporting by Sarah McBride; Editing by Jeffrey Benkoe)