$45 Million in Financing for Pivot3

Pivot3, Inc., in hyper-converged infrastructure (HCI) solutions, announced a $45 million equity and bank financing closing.

Argonaut Private Equity, a new investor in the company, joins S3 Ventures, InterWest Partners, Mesirow Financial Private Equity, and the Wilson Sonsini Goodrich & Rosati investment fund in providing additional equity in this closing.

As a part of this round, Steve Mitchell, MD of Argonaut Private Equity, will join the board of directors.

“We invest in premier companies that can transform large and important industries,” said Steve Mitchell, MD, Argonaut Private Equity. “Pivot3 is on the leading edge of a once-in-several-decades transformation of the underlying technology that operates IT data centers globally.”

Industry analysts predict dramatic market growth in hyper-converged systems. According to the Technology Business Research quarterly webinar series in October 2014, “Converged systems are the go-to alternative to complicated piece-part infrastructure, sparking a $17.8 billion global market opportunity.”

“The pervasive need to address unmanageable IT complexity while providing lower cost and improved service on a global scale has created an environment for explosive growth in the HCI market,” said Ron Nash, chairman and CEO, Pivot3. “Pivot3 now has the opportunity to go from being an original innovator of hyper-converged infrastructure to becoming a global leader in providing transformative IT infrastructure technology to our customers, who are leaders in IT and security organizations.“

The new funding is aimed at accelerating Pivot3’s growth and extends the company’s technological competitive advantage.

To accelerate growth company will add resources to accomplis following:

• Extending its position in very dense VDI implementations on blade appliances where storage space is at a premium;
• Increasing its presence in backup and DR, by leveraging its storage efficiency and the high fault tolerance of its patented Global Hyper-Convergence technology;
• Increasing market share for solutions that enable 24x7x365 operations for critical video surveillance applications;
• Continuing to transform its security operations center with virtualization and high-performance storage solutions like the Virtual Security Server; and
• Providing customers with the latest hyper-converged infrastructure to support additional IT workloads as they broaden the applications operating on the Pivot3 platform.

Pivot3 will use the new financing to invest in sales and marketing, recruit talent across multiple job functions in various geographies globally and expand on its channel partner strategy.

In addition, Pivot3 will focus on taking a role in enabling the use of advanced analytics designed to extract new insights from massive unstructured video data sets for business intelligence and enhanced security.