Violin Memory Is Raising More Money Ahead of Planned May IPO

Published on February 14, 2013
by Arik Hesseldahl

flash_madnessViolin Memory, the startup building storage arrays based on flash memory technology that has recently been said to be eyeing an initial public offering, appears to have raised more money.

In a filing with the U.S. Securities and Exchange Commission dated today, Violin disclosed that it is attempting to raise as much as $50 million in new funding from existing investors. The filing is an amendment to a previous one in which it disclosed an $80 million funding round. The round now has an upper limit of $130 million, of which $96.3 million has been raised from 126 investors.

According to an investor approached to participate in the deal, but who asked not to be named, Violin has raised the funding from existing investors at an implied valuation of $850 million. The money, this investor said, would be used to fund operations until Violin completes its planned initial public offering, which now has a target date of early May.

The launch of Violin’s IPO appears to have slid several times. Last April, CEO Don Basile told AllThingsD that the offering would take place no later than Oct. 27 of last year. And as recently as last month, I heard chatter that the IPO would take place during February.

Violin was said to have filed for an IPO under the Jumpstart Our Business Startups Act, meaning the related filings with the SEC aren’t available to the public.

I called a company spokeswoman and was told the company is not commenting on financial matters.

In Violin’s last funding round, which was itself an extension of a $50 million round raised 11 months ago, GE Asset Management joined as a new investor. Other investors include Toshiba, the Japanese chip and electronics maker, and networking gear player Juniper Networks, as well as Highland Capital and SAP Ventures, the investment arm of German software giant SAP.

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