(Adds that Wellington declined to comment)
SAN FRANCISCO Aug 27 Nutanix, which builds data
infrastructures for companies, said on Wednesday it raised $140
million in another funding round, which valued the company at $2
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.
Backing 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.
A spokeswoman for Wellington declined to comment. A
spokesman for Fidelity did not responded to a request 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 it more time to grow as a private company.
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 such as Hewlett-Packard Co
, IBM Corp and EMC Corp. Its customers
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 and