Waaw, just … waaw. PureStorage just closed another round of no less than $225 million. Now I am no financial analyst and I’m trying to understand startup financing bit by bit but doesn’t this seem a little odd? How much cash does a startup like Pure need to burn? It can’t be all to throw at EMC lawsuits can it?
What was the funding of other companies before they went IPO or got acquired?
- Equallogic: $52mln – acquired by DELL at $1.4bln
- XtremIO: $25mln – aquired by EMC at $430mln
- FusionIO: $111mln – IPO at $1.4Bln valuation
- NexGen: $12mln – acquired by FusionIO at $114mln in cash and $5mln in stock
- NimbleStorage: $150mln – IPO at $1.5bln valuation, market cap today 2.4bln
- Whiptail: $31mln – acquired by Cisco at $415mln
- Nexsan: $25mln – acquired by Imation at $120mln
- ScaleIO: $12mln – acquired by EMC at $200-$300mln
How far are some current startups funded?
- Nutanix: $170mln
- ScaleComputing: $45mln
- SimpliVity: $100mln
- SolidFire: $68mln
- Nexenta: $50mln
- Tintri: $135mln
- Kaminario: $31mln
- Tegile: $47mln
- PureStorage: $475mln
What does this mean?
I have no clue but if I look at this whole list of historical facts, a funding of short to half a billion seems a stretch. They will never get that valuation out of an IPO or acquisition at the ratios of the ones that have preceded them. The only logical explanation for me is that PureStorage believes so hard in themselves that they want to be the next NetApp that makes it remaining independent in the long run, expecting to return investments through revenue.
Please feel free to educate me where I am wrong!
Disclaimer: I have done paid work for PureStorage in the past
- PureStorage just released a blogpost on all the WHY questions: LINK
- CEO Scott Dietzen gives his personal thoughts and reasoning for the long term: LINK
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