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Nasuni files away $25 million in funding

Cloud file storage vendor Nasuni picked up $25 million in funding today, bringing its total to $80.5 million. The vendor’s executives expect the latest funding to bring it to cash-flow positive status in 2018.

Nasuni was one of the original cloud gateway startups, launching its Nasuni Filer in 2010. Nasuni software caches active data on-premises and moves other files off to public clouds, mainly Microsoft Azure, Amazon Web Services and IBM Cloud Services.

Nasuni’s software uses the UniFS cloud-native file system. It ships on Dell servers or runs as a virtual appliance to provide an edge connector. Customers can then expand capacity without adding hardware by sending data to a public cloud.

“We solve a storage problem, although we don’t actually store a gigabyte of data,” said Scott Dussault, Nasuni COO and CFO. “Our software enables customers to run a file system so they can have unstructured data management in the cloud.”

Dussault said the vendor will expand its sales footprint in North America and Europe to go with its 2016 push into the U.K. He said the expansion will help Nasuni attract larger customers.

“We started out in the SMB space, moved to the mid-market in 2014 and now we’re also selling to the uber-enterprise,” he said. “Companies are creating a strategy around the cloud, using Nasuni as their file system and mostly private cloud vendors for object storage.”

Other cloud gateway vendors include Panzura and Ctera. Microsoft acquired one-time Nasuni rival StorSimple and EMC bought TwinStrata. Dussault said Nasuni still competes mainly with traditional NAS products from NetApp and Dell EMC.

Dussault said Nasuni grew more than 75% in bookings and revenue in 2016. He said the company has 115 employees and he expects the funding to fuel greater than 25% headcount expansion in 2017.

“This round keeps us on the path of cash flow/break even in 2018,” he said.

The E funding round included $17.5 million in equity funding, led by new investor Sigma Prime Ventures, plus $7.5 million in venture debt financing from Eastward Capital.