Feeds

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

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

Internet Security Threat Report 2014

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.