Inxight Eyes $22M for Storage Networks

Inxight closed its Series D round of financing today with $22 million. The deal was led by VantagePoint Venture Partners. Other participating investors include Reed Elsevier, an information provider, and prior Inxight investors Dresdner Kleinwort Wasserstein and Deutsche Bank.

“There is a proliferation of data, and companies are discovering that they have all this information and they want to make use of it,” says John Laing, Inxight’s president and CEO. “Before the Ethernet the information was easy to access. Now the storage areas are not neat places, but we have the tools to sort that data out and make it useful.”

The company plans to use this latest round of financing for growth and acquisitions. “This round should take us to breakeven by next quarter. We’re using this for operating capital and to buy some companies that are in a jam. Right now it is hard to raise money, and great company with great technology are hurting,” says Laing.

While Inxight is doing just fine in these treacherous market conditions, Laing says the Sunnyvale, Calif.-based company has stayed extremely focused in hopes of outliving its competition. “We make sure we’re not trying to be all things to all people. We are very strong in the government and publishing industries and we are supported by our OEM business,” says Laing.

With about 200 customers already in place, Inxight brought in $12 million in revenue in 2001 and expects that number to grow by 15% to 20% this year.

Spunout of Xerox in 1997, Inxight was given technology and a patent, which considers to be its Series A round. Then in 2000, the company raised $24 million and just a year ago, it closed a Series C round for $5 million.

Contact Danielle Fugazy