Crazy dough? Pure Storage rakes in $225M in new funding, for reported $3B+ valuation

Speakers:
Scott Dietzen - CEO, Pure Storage

Flash storage maker Pure Storage just netted $225 million in new funding, bringing its total cash trove to a whopping $470 million, with a claimed valuation of more than $3 billion. This comes just nine months after Pure Storage raised $150 million in Series E funding.

The money will fuel the company’s undeniably expensive enterprise push and maintain what it calls a two-year head start in technology.  It may have gotten the jump on older, established rivals, but they’re all in this game now and that means the cost of customer acquisition will rise. Last fall, storage market leader EMC launched its own flash storage push, using technology acquired with XtremIO.

While Pure Storage, Nimbus Data and other rivals tout the use of fast Flash for nearly every need, there is not 100 percent agreement that this is really necessary. An array of startups and legacy companies, including EMC, also push hybrid arrays that pair traditional spinning disk with flash as needed. Spinning disks are not as fast as flash, but they’re considerably cheaper.  For more context on this, check out last year’s Structure talk with Pure Storage CEO Scott Dietzen (pictured above) and DataGravity CEO Paula Long and our Structure podcast with Long.

Pure Storage’s new cash, which comes in part from new investor Wellington Management Company as well as previous backers T.Rowe Price Associates and Tiger Global, may also come in handy to fund a multi-front legal spat with EMC, which sued some former employees who joined Pure. And given this huge cash infusion, Pure will have to get more specific about its long-stated IPO plans. Given all this investment, you’ve got to wonder how much of a stake the founders still have in the company.

loading

Comments have been disabled for this post