Hybrid Storage Provider Tegile Completes $35M Funding Round
Tegile said it will use new venture capital money to accelerate the expansion of its IT and strengthen its sales support.The storage sector remains a hit one for investors. Newark, Calif.-based Tegile Systems, which makes hybrid storage arrays for virtualized server and virtual desktop environments, said Aug. 12 that it has closed a $35 million Round C funding round led by late-stage venture firm Meritech Capital Partners. Additional investment will come from original stakeholder August Capital as well as strategic partners Western Digital and SanDisk. With the investment, Paul Madera, managing director of Meritech, joins Tegile's board of directors. Tegile said it will use the money to accelerate the expansion of its IT, strengthen its sales and customer support efforts throughout its North American and European channels, and accelerate its new product/technology development. Tegile has been building the company from the outset to become the only one having generated more revenue than it has taken in outside financing. Before opening its Round C funding, Tegile improved its sales and revenues from doubling every two quarters to doubling every quarter.
Tegile's Zebi product line currently features enterprise-class hard drives and solid state drives (SSDs) from HGST, a wholly owned subsidiary of Western Digital. The strategic equity investment extends Tegile's existing relationship with HGST to include joint technology development. The companies are working together on next-generation storage technology and solutions that are optimized for a wide range of industries and applications, including server virtualization, virtual desktop infrastructure (VDI), database hosting and file services.