Investors in storage startup Silverback Systems took a beating on its exit announced yesterday. Brocade Communications Systems said it would purchase Silverback for an undisclosed amount. Since the purchase price is immaterial and likely below 1% of Brocade's market capitalization of $2.23 billion, the acquisition was probably worth less than $23 million.
This for a company that has raised $48.3 million over the course of four venture capital rounds since 2000. Here's a rundown of the network acceleration processing startup's funding, round by round:
2000 - $2.3 million - Pitango Venture Capital, Gemini Israel Funds
September 2001 - $15 million - J.P. Morgan Partners, Newbury Ventures, Pitango Venture Capital, Gemini Israel Funds
March 2003 - $15 million - Excelsior Venture Partners III, Gemini Israel Fund, J.P. Morgan Partners, Newbury Ventures, Pitango Venture Capital
April 2006 - $16 million - Network Appliance, Gemini Israel Funds, Pitango Venture Capital, Intel Capital, Newbury Ventures, Excelsior Venture Partners
It could have been worse for the investors. They might not have achieved any sale at all.
For more on Brocade's purchase of Silverback Systems, see:
Press release
The Register
Technorati tags: brocade, silverback, m&a, vc, venture+capital
Continue reading below
