Reduxio Systems Scores Millions in Latest Funding Round

On Monday, Reduxio Systems announced a $22.5 million funding round, in an investment that is expected to reach $32 million, according to Reuters.

Reduxio provides storage and data management technology to its clients and plans to use the cash to fund development and marketing of their software-based storage platform.

The vendor took to Twitter to announce the news:

We have raised $22M of series C to enable #hybrid #IT #data #storage and accelerate customer #growth! Details here: https://t.co/O1EfOBScaC pic.twitter.com/PVQRa98EEO

— Ionir (@IonirCloud) March 20, 2017

This new round will bring Reduxio’s total funding to $65 million, Mike Grandinetti, chief marketing and corporate strategy officer for the San Francisco-based company, told CRN. What he didn’t share, was the company’s evaluation or specifics related to the company’s finances.

“But in this tough VC [venture capital] environment, this is s pretty big endorsement of our business,” Grandinetti told CRN.

Reduxio’s clients have access to all-flash storage and hybrid flash-storage arrays, but the company is looking to widen the definition of hybrid and would like it to include the cloud.

“That’s the future of hybrid,” Grandinetti told CRN. “It means much more than something inside the box. It includes moving data to public and private clouds.”

This round of funding was led by investment manager C5 Capital, which focuses on the cloud, cyber security, and data analytics. The company also has a partnership with Amazon Web Services.

The next version of Reduxio’s technology is currently in beta and reportedly includes cloud connectivity. Whether that includes Amazon’s cloud remains unknown.

Investors who had contributed previously were also involved in this deal, including Jerusalem Venture Partners, Carmel Ventures, Intel Capital (INTC.O) and Seagate Technology (STX.O).

The company boasts about 100 customers that have purchased approximately 150 systems as of 2016. Not one customer has reportedly asked for all flash storage, but that doesn’t mean it can’t be done, Grandinetti noted.