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E-mail archiving startup Mimosa Systems has raised $17 million in its third round of funding, raising its total haul to date to $34.5 million.
The round, led by Mayfield Fund with participation from current investors Clearstone Venture Partners, August Capital and JAFCO Ventures, will be used to expand sales and marketing of its NearPoint e-mail archiving solution.
Mimosa says its NearPoint for Microsoft Exchange Server offering helps users with e-mail archiving, e-discovery, regulatory compliance, data protection and storage optimization in a time of growing demand.
"E-mail archiving is becoming a must-have for organizations of all sizes across all vertical segments," says Arun Taneja, founder and consulting analyst at the Taneja Group. "Mimosa's next-generation technology distinguishes them from other companies in this market space, especially in terms of its architecture, scalability and ease of deployment."
Mimosa claims "double-digit" growth rates and 160 NearPoint customers to date.
It expects growth to get even better with new federal e-discovery rules that took effect late last year.
Nearly half of all organizations with more than 20,000 employees experienced an electronic discovery event last year, the company says, a number that's expected to rise. According to Forrester, the e-discovery process costs companies an average of $1,800 per GB and even more in penalties when they fail to produce requested data. Mimosa cites multi-million dollar fines issued to the likes of Philip Morris, Bank of America and UBS Warburg, and in the case of Morgan Stanley, $1.6 billion for a flawed discovery process.
Mimosa says it helps by making corporate data accessible, searchable and available for litigation and compliance purposes at a fraction of the cost of current solutions. NearPoint unifies e-mail archiving, recovery and storage optimization, ensuring continuity and regulatory compliance while lowering storage costs, the company says.