Storage company ONStor pulls IPO plan, raises $25M
ONStor, a data storage equipment maker that had hoped to go public, has pulled those plans and raised another $25 million from investors.
We wrote about OnStor here when signaled its intent to go public, and mentioned the large number of storage companies that were seeking to go public, even when they were losing money and facing fierce competition. 3Par, Compellent, Data Domain and Netezza all held IPOs last year, and all of their stocks have dropped, a weakness that began showing even before the recent faltering of the general stock market. So this pull back by ONStor isn’t a surprise.
The company, which specializes in network-attached storage, which lets you store and share files on a network, is now saying it will wait until it gets profitable, something it says the market is demanding.
The company’s sixth round was furnished by existing investors, according to VentureWire: Foundation Capital, Mayfield Fund, Sand Hill Capital, Velocity Interactive Group and Worldview Technology Partners.
The company has taken $14.8 million of the funding, and it will get the remainder at the end of the year, presumably if it hits certain targets.
The company has raised at least $130 million.
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