Isilon Systems Inc., has found a silver lining in a stormy economic climate.
Isilon, a maker of network storage systems for digital content, announced the completion of a $15 million second round of financing, led by Sequoia Capital. Initial investors Atlas Venture and Madrona Venture Group also participated, bringing Isilon's total funding to $23.4 million. Concurrent with the financing, Sequoia Capital partner Greg McAdoo has joined Isilon's board of directors.
Isilon managed to buck the floundering economy and secured its second round of financing in approximately two months.
The company received its series A investment of $8.4 million in May 2001 to fund product development. Isilon said it will put the new cash to use by expanding the sales and marketing effort for its network storage system, which is now in customer trials and scheduled to ship this fall.
Jamie Gruener, senior analyst at Yankee Group Inc., Boston, Mass., said customers are no longer willing to pay inflated prices for refrigerator-sized storage infrastructures.
"Isilon's focus on digital content combined with the approach of using industry-standard hardware to deliver a dense, high-performance storage system is a much more cost-effective way for customers to extend their storage infrastructure to support applications focused on digital content," stated Gruener.
Isilon's system was designed specifically for digital content. At the center of Isilon's approach
The Yankee Group estimates that the use of digital content, such as video, images and research data will increase by a factor of 12 by 2005, creating a huge market opportunity.
The Seattle-based company was founded in January 2001 and is financed by Sequoia Capital, Atlas Venture and Madrona Venture Group.Let us know what you think about the story, e-mail Kevin Komiega, News Writer
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