Data Storage Company, Scale Computing, Raises $12M Series D Led By Heron Capital To Grow Its Datacenter-In-A-Box

Data storage company Scale Computing, which provides clustered storage infrastructure for small and medium-sized companies, has closed a $12 million Series D funding round, led by Heron Capital Venture Fund. Reservoir Venture Partners also contributed to this round as a new investor, joining existing investors — including: Allos Ventures, CID Equity Capital, Spring Mill Venture Fund, Northgate Capital, Benchmark Capital Partners and Scale Venture Partners.

Scale said it will use the new funding to accelerate growth of its HC3 datacenter-in-a-box product — which combines servers, storage, and virtualization in one fully integrated, scalable appliance. It will also use the new funds for continued product development and the launch of a new partner program later this year. HC3 only launched in late August but it accounted for half of Scale’s Q3 sales, and the company said it is already approaching 100 HC3 deployments.

“There is a huge opportunity unfolding for us here in the midmarket with over one million companies in the US looking to virtualize for the first time,” said Jeff Ready, CEO of Scale Computing in a statement. Scale says its datacenter-in-a-box stands out from competitor products by EMC and VMware by doing away with ongoing licensing fees for the hypervisor. It also makes use of open source technologies and simplifies support. Scale claims its system results in significant reductions in costs and complexity for mid-tier companies.

“Scale Computing is at the forefront of virtualization hyperconvergence,” noted Bill Gurley, partner at Benchmark Capital, in a statement. “Scale is able to remove both the complexity and cost of CPU/storage virtualization with their HC3 product. The hypervisor isn’t merely commoditized — it elegantly disappears inside the intuitively simple interface.”