Feeds

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

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

Next gen security for virtualised datacentres

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. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
VMware vaporises vCHS hybrid cloud service
AnD yEt mOre cRazy cAps to dEal wIth
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?