- The number of rounds dropped to 34 but the total funding jumped up to roughly $1.1B for 2017, driven by later stage funding across a range of product segments.
- Rubrik led the pack taking in $180M back in May followed by Infinidat with a $95M 3rd round of funding in October.
- With the constant drum beat of software-defined- “everything” and the continual movement to the cloud, it was surprising to see Systems lead the venture product segment split for 2017 with 53% of all funding.
- While certainly much of the core IP in these start-ups is software, they have chosen business models incorporating hardware.
- We believe this is driven by customer demands for products that can be easily installed, configured and managed.
- Software margins of 80% are attractive to investors but for enterprise customers, manageability, scale and reliability matter and it’s tough to get there without tight hardware integration.
For the full report, contact John Rotchford, Managing Partner, at firstname.lastname@example.org