The Mayfield Fund, fresh off of the $2.4 billion sale of storage company 3PAR, in which it was an original investor (as we previously reported), plans to announce on Tuesday that it has led the $13 million Series B round in StorSimple.
It was a competitive round, says Ursheet Parikh, co-founder and CEO of StorSimple, which provides enterprises with what it calls a simple-to-use cloud storage technology that integrates with Amazon, EMC, Iron Mountain and Microsoft storage services to make it look like a local data center.
“We got a lot of in-bound term sheets within a few weeks,” Parikh said on Monday. “We went with Mayfield, since, as the 3Par investment and sale demonstrates, they understand that this market takes a long time to develop and grow. They understand the cloud market.”
StorSimple was founded in May 2009 and raised an $8 million Series A from Index Ventures and Redpoint Ventures the following month. Both Index and Redpoint joined in the Series B, along with new investor Ignition Partners.
As a result of the funding, Navin Chaddha (pictured), managing director at Mayfield, and Richard Fade, partner at Ignition Partners, have joined the board, which also includes Mike Volpi and Bernard Dalle from Index and Satish Dharmaraj from Redpoint.
Chaddha told me today that he sees the cloud market continuing to heat up and expects VCs to continue to invest in it for the next five to 10 years.
Venture capitalists have to be encouraged by the small wave of acquisitions of late.
Although Hewlett-Packard winning the bid to buy 3PAR is the most noteworthy example of recent M&A activity, VMware has purchased two VC-backed cloud-related companies in the past month (Integrien and TriCipher). Meanwhile, CA has committed $1 billion to cloud acquisitions this year and IBM is likewise investing in cloud services.