Cambridge software maker Infinio said Monday it has closed a $12 million funding round, just six weeks after releasing its first product designed to help businesses maximize storage on their data networks.
The follow-up investment represents a vote of confidence in the two-year-old company, whose Infinio Accelerator software has been downloaded by more than 50 businesses spanning a wide range of industries since it was unveiled in November, according to chief executive Arun Agarwal.
All of the company’s earlier backers — including Bessemer Venture Partners, Highland Capital Partners, Lightspeed Venture Partners, and Osage University Partners — invested again in the latest round.
Infinio’s early traction “is the type of momentum that suggests a truly massive opportunity,” said Bessemer partner Felda Hardymon. “Bessemer manages a very large fund, and one of our key strategies is to double down on winners like Infinio.”
The new funding caps a big year in which Infinio raised a total of $22 million and was named the state’s top “startup to watch” by the Massachusetts Technology Leadership Council. In addition, its Accelerator software was a finalist in the “best new technology” category at VMWorld, a major industry conference in San Francisco.
Infinio Accelerator addresses a common problem for businesses of all kinds: As storage space fills up on their servers, network performance suffers. That can mean longer waits when loading files and using internal websites, hampering workers’ productivity.
A popular, but expensive, way to speed things up is to buy more server space. Infinio says such purchases are often unnecessary, however. Made more efficient, a company’s existing equipment is frequently enough to deliver high performance.
The Accelerator software aims to improve efficiency by combing a company’s data center for unused resources and creating a sort of storage bank that servers can share.
At $499, the Infinio download is significantly cheaper than even one new server, which can cost thousands or even tens of thousands of dollars.
At some point, additional hardware becomes necessary, but Infinio’s goal is to make sure companies get the most out of what they already have and buy new equipment only when they really need it.
“A tool like this allows me to get a little more life out of my hardware,” said James Hayes, divisional vice president of information technology at Hancock Fabrics in Baldwyn, Miss., which became Infinio’s first paying customer after a successful beta test. “Before, we were asking, ‘Can we make this box last four years?’ Now, we’re asking, ‘Can we make it last six years?’ ”
Agarwal said Infinio will use money from the new funding round mostly to ramp up marketing of the Accelerator software. Funds from a $10 million round in February, and a $2 million seed investment last year, were dedicated primarily to engineering the product.
“We’re totally thrilled with how things are going, particularly the breadth of customers,” Agarwal said. “The fact that financial services companies, software companies, shipping companies — businesses with very different operations — are using our product tells you that the problem we’re solving is pretty universal.”