Tegile Completes $35 Million Funding Round

Newark, Calif. – August 12, 2013 – Tegile Systems, a leading provider of hybrid storage arrays for virtualized server and virtual desktop environments, today announced the closing of its $35 million Round C funding led by late-stage venture firm Meritech Capital Partners with additional investment by original stakeholder August Capital and strategic partners Western Digital (NASDAQ: WDC) and SanDisk (NASDAQ: SNDK).  With the investment, Paul Madera, managing director of Meritech, joins Tegile’s board of directors.

The completion of Tegile’s “scaling round” allows the company to rapidly accelerate the expansion of its proven technology and successful go-to-market strategy by utilizing the capital raised to further strengthen its sales and customer support efforts throughout its North American and European channels and to accelerate its new product/technology development.

Unlike other companies in the SSD/hybrid product space that have made earlier rounds of funding the major infusion of working capital, Tegile has been aggressively building the company from the outset to become the only one having generated more revenue than it has taken in outside financing.  Before opening its Round C funding, Tegile improved its sales and revenues from doubling every two quarters to doubling every quarter.  By accepting additional financing, Tegile can leverage that momentum to ensure it is positioned to capitalize on every possible market opportunity in a timely manner.

It’s great to see Tegile Systems have closed their Round C funding, their continued innovation of virtual server and virtual desktop solutions brings further competition and platform innovation which has to be a good thing for the end user community  alike. I’m looking forward to seeing how they further their expansion and continue the product innovation. I wonder if we could see their technology as a virtual desktop/server hosting solution?  Virtual desktop as a service along side their direct product offering?