AUSTIN, Texas--(BUSINESS WIRE)--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.”
Pivot3 is the world’s leading provider of dynamic hyper-converged infrastructure solutions and predictable flash storage. Pivot3’s patented solutions dramatically improve data center simplicity and economics by increasing scale-out performance, driving down complexity and cost, saving an extraordinary amount of disk and physical space and ensuring fault tolerance. With Pivot3’s unique Quality of Service and Virtualization Management capabilities, customers are able to prioritize data and application performance based on business value. Today, Pivot3 has more than 2,000 customers around the world deploying more than 16,000 globally hyper-converged infrastructures in multiple industries such as video surveillance, healthcare, government, transportation, entertainment, education, gaming and retail. Join us on LinkedIn, follow us on Facebook or Twitter (@Pivot3Inc) or visit us at http://pivot3.com. The company has won numerous awards and was most recently featured by CRN in their top 50 Virtualization list. To learn more about Pivot3, visit http://www.pivot3.com.