Pivot3, Austin, Texas, announced a $45 million equity and bank financing in February.
Argonaut Private Equity, Tulsa, Okla., a new investor in Pivot3, joined S3 Ventures, Austin, Texas, InterWest Partners, Menlo Park, Calif., Mesirow Financial Private Equity, Chicago, and the Wilson Sonsini Goodrich & Rosati investment fund, Palo Alto, Calif., in providing additional equity in the closing. As a part of the recent round, Steve Mitchell, managing director of Argonaut Private Equity, joined Pivot3’s board of directors.
“We invest in premier companies that can transform large and important industries,” said Mitchell, managing director of Argonaut Private Equity. “Pivot3 is on the leading edge of a once-in-several-decades transformation of the underlying technology that operates IT data centers globally.”
Industry analysts predict dramatic market growth in hyper-converged systems. Ron Nash, chairman and CEO of Pivot3 stated, “The pervasive need to address unmanageable IT complexity while providing lower cost and improved service on a global scale has created an environment for explosive growth in the HCI market.”
The new funding is aimed at accelerating Pivot3’s growth and extends the company’s technological competitive advantage. To accelerate its growth, the company will add resources to accomplish the following:
- Extend its leadership position in very dense virtual desktop infrastructure (VDI) implementations on blade appliances where storage space is at a premium.
- Increase its presence in data backup and disaster recovery, by leveraging its exceptional storage efficiency and the high fault tolerance of its patented Global Hyper-Convergence technology.
- Increase market share for solutions that enable 24/7/365 operations for critical video surveillance applications.
- Continue to transform its security operations center (SOC) with innovative virtualization and high-performance storage solutions such as the Virtual Security Server.
- Provide Pivot3’s customers with the latest hyper-converged infrastructure to support additional IT workloads as they broaden the applications operating on the Pivot3 platform.
Pivot3 will use the new financing to invest in sales and marketing, recruit top talent across multiple job functions in various geographies globally, and expand on its channel partner strategy, it reported.