Terascala Closes Additional Funding
Terascala today announced the closing of additional funding from existing venture capitalists and several new investors. Ascent Venture Partners, Harborlight Capital Partners, and Thomas Weisel Partners co-led the equity investment. In addition, the company also signed a significant financing package with Bridge Bank, N.A. of San Jose, Calif. Under the terms of the financing package, Terascala secured two lines of working capital as well as an additional asset based lending facility. Details of the funding were not made public.
Over the last few months, Terascala has transitioned the company to a pure original equipment manufacturer (OEM) sales model and as a result, has been able to reorganize the company in such a manner to better support the needs of their primary OEM partners. OEM sales, primarily thru Dell and NetApp grew by over 100 percent in 2012 and are expected to finish 2013 with annual growth exceeding 75 percent. The business has grown significantly in the higher education, energy, and genomics markets, where the company’s partners have strong solutions and a significant presence.
The funding round will enable additional investments in Terascala’s latest product, the Intelligent Storage Bridge (ISB). Released in Q3, the ISB has already resulted in several orders and provides Terascala’s OEMs the potential to market integrated high-performance computing (HPC) and network-attached storage (NAS) solutions, an industry first. The ISB is a high-performance workflow manager designed to transfer large data sets quickly and automatically between fast scratch storage and enterprise storage.
Terascala’s products can be seen in the Dell booth #1301 and NetApp booth #601 at SC13 on November 17-22, 2013 at the Colorado Convention Center, Denver, Colorado.
“I am excited to announce the additional funding and the continued support of our investor syndicate. They are seeing the OEM sales growth and also hearing from enterprise customers that TeraOS-powered storage platforms in combination with ISB help establish the most efficient HPC infrastructure. Users are empowered with an easy to use, highly scalable, and highly reliable file system, rich analytics to optimize performance, and a high performance workflow with direct access to their project data at any point in the workflow," said Steve Butler, CEO for Terascala.
“Terascala is making great strides in its OEM business model, and we are excited about the company’s future. We were particularly pleased to see the growth and initial sales of the ISB with Dell, NetApp and other channel partners; we believe that the company will continue to grow at a rapid rate and are pleased to be an investor in the company,” added Walter Dick, Managing Partner, Ascent Venture Partners.
