New investor Sand Hill Capital joined existing investors Foundation Capital, Mayfield Fund, ComVentures and Worldview Technology Partners in the final round of funding, which ONStor said was at a “significant increase in corporate valuation.”
ONStor CEO Bob Miller said the company’s second-quarter sales increased 354 percent over the second quarter of 2006, and first-half results were just as impressive.
Miller said the company expects to turn cash-flow positive within the next year and to test the IPO waters, market conditions willing.
ONStor said it will use the funds to increase sales and marketing efforts, engineering and R&D. “We intend to be the leader in NAS storage solutions for mid and large enterprise-sized customers due to the unrivaled scalability and virtualization capability of our products,” the company said in a statement.
ONStor said its clustered NAS technology “saves enterprises 50 percent on total cost of ownership,” while letting customers start small and scale big.
ONStor said it wasn’t affect by the recent loss of its partnership with Compellent, noting that the agreement accounted for “less than 1 percent of the 3 petabytes of heterogeneous vendor arrays attached to ONStor,” while its relationship with 3PAR “is excellent. We continue to do joint marketing and events and share new business opportunities together.”
Arun Taneja, founder and consulting analyst at Taneja Group, said the addition of global namespace technology has helped ONStor recover from a soft patch. “They’ve been getting pretty decent traction and have a pretty decent product line,” he said.