Compellent Secures $9M in First Round FundingAugust 7, 2002
El Dorado Ventures and Crescendo Ventures back new network storage venture
Minneapolis, August 7, 2002 — Compellent Technologies, the latest storage venture from XIOtech founders Phil Soran, Larry Aszmann and John Guider, today announced that it has secured $9M in first round funding. The financing came from Crescendo Ventures and El Dorado Ventures.
Compellent is developing a new storage architecture delivering the utmost flexibility to store, manage, and recover mission-critical data. Compellent's founders conducted extensive customer research before seeking financing. "We bounced our ideas off of people we respected, then we wrote the business plan, then raised the money," says Phil Soran, chief executive officer of Compellent. Jeff Hinck, general partner with Crescendo Ventures, agrees that too many prospective entrepreneurs focus too much on technology, and not enough on what customers want.
"We were very attracted by the product and architecture, which we see as unique and widely applicable," says Jeff Hinck, general partner with Crescendo Ventures. Compellent was one of only two new firms that Crescendo invested in during 2002. "Between the combination of the product and the team it just made a lot of sense," says Hinck.
Charles Beeler, general partner with El Dorado Ventures, says that Soran, Guider and Aszmann have demonstrated that they have the talent - and the patience - for building a successful company. "The guys are impressive. They've been successful in the past with many companies in addition to XIOtech. They know the market space well. They're well connected and well known. It gives them a leg up."
Beeler acknowledges that the storage market has been tough recently, but believes that now is the time for strategic investments. "We think it's a good time to be investing early-stage companies," says Beeler.
About Crescendo Ventures
Crescendo Ventures is a global venture capital firm that provides early-stage financing and growth resources to high-potential companies in the communications and enterprise infrastructure industries. By collaborating with entrepreneurial teams to grow market-leading companies, Crescendo Ventures uses its industry expertise, team-based development model and global network to help high-growth companies achieve their full potential. Founded in 1993, Crescendo Ventures manages more than $1 billion from its headquarters in Palo Alto, California and offices in Minneapolis and London. For additional information visit www.crescendoventures.com.
About El Dorado Ventures
El Dorado Ventures is a leading venture capital partnership founded in 1986. EDV funds invest in early-stage, technology-based companies. With a particular focus on enterprise software and services; communications; and semiconductors and systems, the general partners help entrepreneurs turn startups into companies of lasting value. El Dorado's general partners have funded more than 100 start-ups over the past 25 years, including notable companies such as Earthlink Networks, Efficient Networks, Integrated Device Technologies, Novellus Systems, NuSpeed Internet Systems and Sun Microsystems. EDV is currently investing in new start-ups from the $250 million El Dorado Ventures VI Fund. For additional information visit www.eldorado.com.
About Compellent Technologies
Compellent Technologies is developing a new storage architecture delivering the utmost flexibility to store, manage, and recover mission-critical data. Headquartered in Eden Prairie, Minnesota, Compellent has secured their first round of funding from Crescendo Ventures and El Dorado Ventures. For additional information visit www.compellent.com.