Pivot3,
a pioneer and innovator in the development of storage-centric
hyper-converged infrastructure (HCI) solutions, has announced a $55
million equity and bank financing closing today. The funding will
accelerate the company's growth and enable it to bring to market the
most extensive suite of hyper-converged and flash storage solutions with
predictable performance that is available today.
Argonaut Private Equity and S3 Ventures are providing funding for this
round. The strong support for Pivot3’s strategy and growth record from
existing investors as well as the interest from new investors are strong
indicators of Pivot3’s future business success.
“We are dedicated to investing in market-leading companies that deliver
innovative solutions for real world problems, and Pivot3 exemplifies our
mission,” said Steve Mitchell, managing director of Argonaut Private
Equity. “Hyper-converged infrastructure and flash storage are two
emerging markets that are experiencing unprecedented growth. Pivot3 is
poised to become an unparalleled presence with truly differentiated
solutions that address the cost and complexity of the modern IT data
center in a far broader and more comprehensive way than its competitors.”
As part of this financing, Pivot3 will move its banking relationship to
Square1 Bank, the emerging leader in technology financing. “The insight
to future technology needs and the aggressive movement to market
opportunities that we see in Pivot3 make it a great customer for Square1
Bank and our team of technology bankers,” said Ken Fugate, founder and
managing director of Square1 Bank. “We expect to grow over the years
with them.”
In February 2016, Pivot3 acquired NexGen Storage, a leading provider of
PCIe flash arrays with storage Quality of Service (QoS) and dynamic
provisioning capabilities. Pivot3 and NexGen's combined capabilities
allow customers to apply the right infrastructure and priority to each
workload, application or business service according to its
business value and to guarantee the appropriate level of service. The
latest round of funding will accelerate the integration of the combined
NexGen and Pivot3 product set, development of breakthrough new products
and advancement of the go-to-market plan.
According to Technology Business Research (TBR), hyper-converged
platforms are nearing a $10.6 billion addressable market in the United
States as more organizations are drawn to more efficient internal
processes and operations management. TBR shows the flash storage market
in a similar hyper-growth rate, suggesting that flash storage will reach
a $13.5 billion market value by 2018.
The latest round of financing allows Pivot3 to deliver a new set of
solutions that uniquely address the critical data center challenges of
agility and cost as organizations move to the software-defined data
center of the future. Pivot3 will use the funding to integrate the
NexGen QoS capabilities with Pivot3's leading HCI solutions while
extending its patented scalar erasure coding to the NexGen
high-performance storage solutions. With the combined technologies,
Pivot3 is able to expand the use cases served with an improved
technology architecture versus traditional HCI. This is the only
solution of its kind in the industry.
“Companies today need a dynamic, agile and flexible IT infrastructure
that can provide them with a competitive advantage as well as a
significantly lower total cost of ownership,” said Ron Nash, CEO of
Pivot3. “Pivot3 is tackling this challenge head-on by initiating a
market-wide transformation that will expand the traditional notion of
hyper-convergence and high-performance storage and allow customers to
effectively and efficiently manage IT as they adapt more quickly to
emerging business challenges.”