Venture capitalists can’t get enough of virtualization – Thank Goodness!

analysis
Feb 1, 20083 mins

Yes, you've heard it before: Virtualization is a hot, growing market. The strange thing is, it isn't just the analysts and media talking about it anymore. And it's not just those people in the virtualization community talking about it either. Venture capital firms have recognized the trend and can see where virtualization is going. Because of that, we've seen an increase in the funding of these companies. Why, j

Yes, you’ve heard it before: Virtualization is a hot, growing market. The strange thing is, it isn’t just the analysts and media talking about it anymore. And it’s not just those people in the virtualization community talking about it either. Venture capital firms have recognized the trend and can see where virtualization is going. Because of that, we’ve seen an increase in the funding of these companies. Why, just in the last week or so we’ve seen a number of press releases hit the wire about additional funding.

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Cirba, a provider of data center intelligence software, today announced that it has raised $12 million in its second round of institutional funding led by Sigma Partners. Existing investors including Edgestone Capital Partners and others also participated in the round. The funding will enable Cirba to further accelerate growth on a global scale, with investments in sales, marketing and product development.

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Virtual Iron Software, as provider of enterprise server virtualization, today announced that it has secured $20 million in new venture equity financing. The funding, provided at an increased valuation, will be used to accelerate product development and expand global sales, marketing and distribution efforts. The investment brings Virtual Iron’s total venture funding to $65 million in invested equity capital and includes Highland Capital Partners, Matrix Partners, Goldman Sachs, Intel Capital and SAP Ventures.

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Pano Logic today announced it has completed a $12 million series B funding round led by Goldman Sachs, and joined by existing investors ComVentures and Foundation Capital. Pano Logic leverages existing server virtualization technologies to create a new approach to client/desktop computing that dramatically lowers total cost of ownership while increasing security, management and mobility. To keep up with the growing demand within the enterprise for desktop virtualization solutions, the company will use the funding to accelerate product development, expand sales and marketing efforts, and secure additional channel/SI partners to address the midmarket.

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VirtenSys, a provider of I/O virtualization solutions — a crucial new technology that enables organizations to optimize the data centers in their IT infrastructure, to improve performance and reduce total cost of ownership — announced it has received USD 12 million in its Series B funding round, all from its original investor syndicate. The syndicate comprises Scottish Equity Partners (SEP), Celtic House Venture Partners (CHVP), and GIMV. The investment will be used to expand its market, to grow its operations in the U.K. and the U.S., and, shortly, to launch its products and begin revenue generation.

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Hopefully, VC firms continue to fund new and innovative solutions in the virtualization space. We’ve only just begun to see where virtualization can take us.