Today we closed a $70 million funding round, receiving more money than we sought, some from new investors Capricorn Investment Group, Cross Creek Advisors and Pine River Capital Management, and some from our valued existing investors, August Capital, Meritech Capital Partners, Western Digital and SanDisk Ventures.
Market conditions ripe for growth
We’re on the cusp of a major transformation in enterprise storage. The usage of flash as a persistent medium is redefining the expectations of performance and economics that is achievable with enterprise storage systems. Tegile is leading this industry change and adding fuel to the speed of change. The new investment is a testament to the execution and realization of a vision we have had since our founding five years ago, of using flash for enterprise storage.
We owe thanks to our team
How do you secure a $70 million round of funding? It all starts with people. Tegile’s technological and financial growth has happened under the stewardship of an exceptional team. We’ve earmarked some of our new funding for head count and real estate because we expect to double our team within the year. To our current 300 employees and Executive Team, thank you for believing in our work. Together we have profoundly changed the way that our customers rise to their business challenges.
Closing our first phase of development
With this $70 million round of funding, we feel as though Tegile is closing the first phase of our company’s development. In the tech world, you can claim to be a “startup” as long as it suits you strategically; but it’s safe to say that we no longer qualify as a startup. We recently surpassed 1,500 installations and have several hundred channel partners evangelizing on our behalf. We’ve earned an impressive number of product and company awards, including being named a Visionary on Gartner’s Magic Quadrant. Customers keep singing our praises.
We started Tegile almost five years ago to explore a storage medium that was just beginning to interest business customers: flash-based solid-state disk. We combined it with traditional hard disk storage for performance and value, and loaded it with data management capabilities that no one else included. About two years later, we began selling our first products — which were, even in their earliest iterations, significantly faster than conventional hard disk-based arrays and significantly more affordable than the all-flash products on the market.
To fuel growth, Tegile competes with industry leaders
Every two quarters since Tegile began as a company, our revenue has at least doubled; and year over year, our revenue has increased by 350 percent. Last year, revenue growth in Europe alone grew by 600 percent. Our revenue growth is because of – not in spite of – the fact that Tegile products compete head to head with industry leaders. We know that a sizable chunk of our sales comes at the expense of vendors such as NetApp, EMC and Dell. We recognize that we’re displacing incumbents who usually consider their products to be a “sure thing” for their customers.
Furthermore, unlike companies that spend a fortune on marketing, such as Pure Storage, EMC, and Dell, we accomplish our growth while being very shrewd with our resources. We know that we don’t have to be the biggest to be the best; we just need to have the best solutions for our customers, something that our investors recognize.
Growth of our product family makes good things happen
Our product family has grown in every conceivable way. Almost one year ago, after steadfastly sticking to hybrid arrays, we released the first all-flash product good enough to be called a Tegile array. It delivered all the features and advantages of its hybrid cousins, but it also blew all-flash competitors out of the water in price per gigabyte, endurance, and density. Let’s just say that our release of a Tegile all-flash array surprised many storage veterans who considered us a hybrid-only player.
As Tegile rolled out new products and features, and entered new product categories, we saw many good things happen:
- Our average sales price went up.
- Existing users became repeat customers.
- We introduced Agility Pricing, a flexible payment program that increases sales by making it easy for companies to buy Tegile products. Customers can choose outright purchases, standard leases, or utility pricing based on capacity consumed.
- We introduced our Flash 5 Guarantee, which gives buyers the confidence to know they’ve made the best storage purchase possible.
What will we do with $70 million?
With this newest round of funding, you can be sure that we’ll continue to invest in the people and technology that make Tegile a success. As we’ve proven with our revenue growth and storage awards, we do not have to be the biggest to satisfy the product and pricing needs of enterprise companies; we just need the best solutions for our customers. Investors agree.