Venture capitalist wins big in data storage company sale
ScaleIO founders are expected to earn around US$60 million from a deal that will see the company being acquired by EMC Corporation. Details of the acquisition, however, were not revealed but it is assumed to be for around US$200 million in cash. ScaleIO was setup to develop data storage systems.
Around US$12 million was initially invested in ScaleIO, in a financing round concluded late last year. Most of the Funding came from the Greylock Partners funds and Norwest Venture Partners. A number of private investors also joined in.
Among the individual investors were former Check Point chairman Amnon Bar Lev, who currently serves as chairman of ScaleIO. Frank Slootman, former CEO of Data Domain, which was also bought by EMC in 2009, had also invested in the company. This left the founders with 30% shares of the company, subsequently earning around US$60 million from the exit. The venture capital funds expect to have a tenfold return on their initial investment.
The company was founded no more than three years go in 2011 by five veterans of the storage industry: CEO Boaz Palgi, Lior Bahat, Erez Webman, Erez Ungar, and Eran Borovik.