The round will help expand sales and marketing operations outside Egnyte’s Mountain View, Calif. headquarters and there are plans for new offices in the Pacific Northwest, New York, Florida and Chicago, as well as to pump up efforts in Europe, the Middle East and Africa, CEO Vineet Jain said via email.
The company also plans to staff up more in engineering in Silicon Valley and to triple R&D headcount in eastern Europe. Funding comes from Seagate, CenturyLink/Savvis, Northgate, and from existing backers Kleiner Perkins Caufield & Byers Google Ventures, Polaris and an “unnamed major storage vendor.”
Egnyte has its work cut out for it on the marketing front, where it must contend with Box and Dropbox’s enterprise push. Box announced $100 million in new investment last week, bringing its total up to an eye-popping $400 million. Dropbox is an even bigger fish, seeking $250 million in new funding, although truth be told the $8 billion valuation the company is seeking seems a stretch.
Other competitors include Accellion, EMC Syncplicity, ownCloud which just netted new funding and a new release, and SugarSync, which interestingly, just announced plans to cut its freemium version. Nearly all of these companies use free versions to build market share, if not profitability.
Cloud-based file sharing for business may be a big pond, but there are an awful lot of big fish in there.