Pivot3, an Austin, Texas-based developer of virtualization solutions for the networked storage market, has closed a $45 million round of equity and bank financing. The funding comes on the heels of a $12 million Series E round that closed in August of last year.
Argonaut Private Equity, a Tulsa, Okla., private equity and venture capital firm, led the round as a new investor. Existing investors S3 Ventures, InterWest Partners, Mesirow Financial Private Equity and the Wilson Sonsini Goodrich & Rosati Investment Fund also participated. As part of the deal, Argonaut Managing Director Steve Mitchell has joined Pivot3’s board of the directors.
Founded in 2002, Pivot3 describes itself as the developer of “hyper-converged infrastructure (HCI) solutions” in the video surveillance, virtual desktop, disaster recovery and video-based security markets. The Austin company builds server and storage virtualization software and hardware that allows companies to store larger amounts of data at a lower cost.
“The pervasive need to address unmanageable IT complexity while providing lower cost and improved service on a global scale has created an environment for explosive growth in the HCI market,” said Ron Nash, chairman and CEO of Pivot3, in a press release.
Pivot3 will use the funds for sales and marketing, employee recruitment and to expand its channel partner strategy, possibly on the way to an IPO later this year. Nash told the Austin Business Journal that he expects the company to profitable by 2016 but declined to say how much investment capital Pivot3 has raised since launch. The Journal estimates that figure to be close to $110 million.
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