Confluence Networks Inc., a Milpitas, Calif.-based data storage management network, is coming out of stealth mode today by announcing a $28.3 million second round of venture capital funding.
Venture Strategy Partners led the oversubscribed round, while Redpoint Ventures and New Enterprise Associates exercised their pro rata rights. New investors included Dali Hook Partners, Comcast Interactive Capital and Seagate Technology. ?We were only looking for $25 million, but we had some good quality investors who wanted to get in,? says Rob Siem, vice president of finance with Confluence.Confluence expects to begin generating revenue in 2003, however the company was tight-lipped as to when it will hit profitability. Confluence is not expected to need another round of private equity financing.
Going forward, Davis says Confluence?s biggest challenge is building out the startup, and getting enough traction and customers.
?I can?t say too much without giving away our technology, but we are preparing to bring to market a system that is designed to improve the way data storage networks operate,? says Mark Davis, the company?s vice president of marketing. ?We will increase productivity and cut costs in large corporations.?
Founded in August 2000, Confluence has raised a total of $45 million, had 85 employees and is expanding it sales and marketing teams.
Contact Danielle Fugazy at Danielle.Fugazy@tfn.com
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