NGD Systems Completes $12.4 Million Series B Financing

NGD Systems, Inc., in computational storage, announced the completion of Series B round of financing with $12.4 million.

The round was led by new investor Partech Ventures with participation from Orange Digital Ventures. Existing investors Alcor Micro, Corp. and Benhamou Global Ventures (BGV) also participated in the round.

In addition, the company received a $4 million credit facility from Silicon Valley Bank (SVB).

“NGD Systems is very pleased to announce the closing of our B-Series round,” said Nader Salessi, president and CEO, NGD Systems. “We see the strong participation of both our existing investors and our new lead investor as validation of both our technology, and explosive market opportunity.”

The proceeds will be used for strategic growth initiatives, including the acceleration of go-to-market activities, continued innovation of the company’s technology, and migration of its advanced 14nm SSD controller to mass production.

The new round of financing brings NGD’s total capital investment to date to $26 million.

“The new application architectures are increasingly requiring the capability to gather and process data at the edge of the cloud rather than send everything for central processing,” said Reza Malekzadeh, general partner, Partech Ventures. “We believe the team at NGD Systems has the right expertise and experience to deliver this new generation of Intelligent Storage devices and their progress to date has been remarkable.”

“We are extremely pleased to see further validation of our initial investment thesis from a strong syndication led by Partech ventures,” said Amir Nayyerhabibi, COB, NGD Systems, and partner, BGV. “We believe the new paradigm shift created by NGD Systems will impact a wide array of industry applications such as AI, cloud computing, and content delivery.”

“NGD Systems’ in-situ processing approach revolutionizes the deployment of applications that today require huge clusters of expensive multi-socket servers with large amounts of RAM. When combined with high capacity and low power consumption, the result is significant cost, footprint, and power savings,” said Mike Heumann, managing partner, G2M Research, a market research firm in NVMe storage.

“We’re excited to expand our partnership with NGD Systems in support of their growth and expansion,” said Derek Hoyt, MD, SVB. “Our primary objective is to provide the right financing, connections and global services to help the NGD Systems team move their business forward quickly.”