Apparently there’s still more data that needs to be stored, which leave plenty of enough room another data storage company. Addamark is the latest storage company to jump on to the scene. The San Francisco-based company is expected to announce today that it has secured $7 million in its Series A round of funding.
Differentiating itself from the pack, Addamark enables businesses to store and correlate log data from multiple sources including security systems, Web servers and custom applications, which allows businesses to identify and investigate customer behavior and usage.
“Storing data is only one part of it. The bigger part is that we let companies query the data. It’s really a marriage between storage and data finding,” says Mark Searle, founder and CEO of Addamark. “Our biggest competitors are really homegrown systems. Companies were grappling to put this kind of system together.”
The round was led by Sierra Ventures. Battery Ventures also participated and $1 million came from some angel investors and company employees. The new cash will be used to bolster Addamark’s engineering and sales teams by adding seven more employees to its 14, and to expand its product’s features and functionality.
“Addamark is the first company we’ve seen to really hone in and solve the problem of storing and analyzing the huge amount of log data that [companies] produce daily across multiple systems,” says Dave Schwab, a general partner at Sierra.
Schwab and Steve Williams, also from Sierra, will join the company’s board of directors as a result of the round, as will an unnamed partner at Battery. The company is still looking to add two more board members.
Searle says while his company was given a fair valuation, his main attraction to Sierra was its experience in selling to Global 2000 customers, which is Addamark’s target customer base. “They were the partner that understands our business and could contribute to our growth,” he says.
Although Addamark is a relativity new company – founded in January 2001 – it already has five customers and is seeing revenue. The company’s goal is to have 12 customers by March 2003.
Addamark’s next move is unclear. “We would like to really drive revenue and finance the company that way but I can’t be sure that this going to happen. We will do whatever is right,” says Searle. “Our goal right now is the stay focused, give great service and build.”
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