Infineta Systems Raises $15 Million

Infineta Systems, a San Jose, Calif.-based maker of network optimization products, has raised $15 million in Series A funding from Alloy Ventures and North Bridge Venture Partners.


Infineta Systems (“Infineta”) today announced that the company has closed a $15 million Series A round of venture capital funding with backing from Alloy Ventures and North Bridge Venture Partners. The company will use the funding to pioneer a new category of products that will help Global 2000 enterprises address the explosion in inter-data center traffic resulting from mission-critical storage replication, backup and emerging “private cloud” applications. These products will be based on the company’s patent-pending Velocity Dedupe Engine™, the industry’s first-ever hardware-based network deduplication technology.

“The requirement for massive scalability and ultra-high performance connectivity to address the traffic deluge occurring between data centers is costing enterprises millions annually,” said Paul A. Santinelli, General Partner, North Bridge Venture Partners. “Infineta Systems has developed game-changing technology to address this issue.”

Today, replication traffic is the primary driver of inter-data center traffic growth. Replication traffic alone will triple in the next three years for the typical Global 2000 organization with some of the largest Fortune 500 companies seeing annual growth exceeding 100 percent (source: Forrester Consulting and Infineta). The implementation of long distance virtualization, resource pooling and site migrations will further exacerbate this growth. Prior to Infineta, no adequate solution has existed to address this growing problem. Infineta’s technology provides unprecedented levels of throughput, scalability and bandwidth capacity for large data center-to-data center interconnects, accelerating large volume, low latency traffic by 5x or more while reducing bandwidth consumption by up to 10x.

“When looking at investing in Infineta, we saw a company entering the market during a perfect storm in business and IT today, where traffic volumes are exploding at the exact same time that cost considerations are of paramount importance to today’s enterprises,” said Ammar H. Hanafi, General Partner, Alloy Ventures. “Addressing this challenge by constantly adding more bandwidth is a very expensive and unsustainable proposition for businesses. Infineta’s solution immediately addresses a customer’s severe pain point today, while providing them with a path towards significantly reshaping their enterprise data center architecture in the future.”

“With the closing of this round of funding, Infineta has achieved a major milestone in our journey towards addressing the inter-data center traffic explosion,” said Raj Kanaya, co-founder and CEO, Infineta Systems. “Alloy Ventures and North Bridge Venture Partners are ideal partners for us as we develop a market-leading solution to address one of the hottest growth areas in enterprise networking.”

About Infineta Systems

Infineta Systems is a privately-held network infrastructure startup that develops and markets a line of high-performance network optimization products. The company’s patent-pending Velocity Dedupe Engine™ delivers unprecedented levels of throughput, scalability, and bandwidth capacity for large data center-to-data center interconnects. Global 2000 enterprises turn to Infineta’s solutions to accelerate critical business continuity and disaster recovery workflows such as replication and remote backup at rates of up to 10Gbps. The company is backed by Alloy Ventures and North Bridge Venture Partners. For more information, visit