Feeds

Pure Storage opens wide, VCs shovel in yet MORE millions of $$$

Nearly half a billion dollars of funding to date. But no IPO?

Secure remote control for conventional and virtual desktops

All-flash array startup Pure Storage has just trousered another $225m of funding, less than a year after enjoying a $150m E-round. Why on earth does it need more cash now?

The cash, according to a Pure press release, will “support the continued acceleration of its market trajectory and international business expansion through increased investments in engineering, sales, marketing and channel partner enablement, to meet insatiable global demand for the Pure Storage FlashArray."

New and existing investors stumped up the money in this F-round. Pure's funding history looks like this:

  • 2009 - $6.6m from angel investors
  • Aug 2010 - $18.4m B-round
  • Aug 2011 - $30m C-round
  • Aug 2012 - $40m - D-round
  • Aug 2013 - $150m E-round
  • April 2014 - $225m F-round

Total funding is now $470m, with the company valued at more than $3bn. Are we seeing a bubble building up here? Will other all-flash array startups receive uplifts in their valuation or is this purely (sic) a Pure Storage phenomenon?

The company is not profitable and investors are gambling that it will survive the competition from mainstream suppliers such as Cisco, Dell, EMC, HDS, HP, IBM and NetApp and will not crash and burn even if other all-flash array startups do.

Pure Storage has been growing strongly, meaning revenue has been coming in. Yet, unlike Nimble Storage which IPO'd while unprofitable, Pure has decided not to have an IPO, for now, and is raising more cash from VCs instead.

Comment

We here at the Reg storage desk think that Pure has decided not to have an IPO until it has shown it can meet and beat mainstream storage array supplier competition. We think it wants particularly to compete successfully against EMC's XtremIO product, the Violin Memory 6000 arrays, Solidfire and NetApp's EF540/500 and coming FlashRay.

If it can do that and ride a growing flash array wave then a successful IPO at, say, a $3bn to $5bn valuation could be possible. That'd be highly profitable for the VCs who are now betting big on the outcome. ®

Beginner's guide to SSL certificates

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.