It is not every day that two founders have both made previous exits. This is the story of how Israeli Stratoscale has soared to such heights
Israeli cloud computing startup Stratoscale announced on Wednesday that they have raised a whopping $27 million in Series C funding. Qualcomm Ventures joined this round with every one of their existing investors: Battery Ventures, Bessemer Venture Partners, Cisco, Intel, and SanDisk.
For companies processing a lot of data in the cloud and without the resources of giants like Amazon and Google, Stratoscale hopes to help them scale their IT operations. Specifically, their all-inclusive data center cloud offering, which rivals companies like VMware, goes beyond the “one server at a time” approach and builds an entire rack at a time that sits on top of thousands of servers. As Co-Founder and CEO Maislos described to ZDNet, “We took what VMware did, and applied it to tens of thousands of nodes, while supporting newer technologies … it allows organizations to be more efficient in resource allocation, and much more agile, doing more with less hardware,” he explained.
Three time’s (more of) a charm?
It is not every day that two founders have both made previous exits. Serial entrepreneur Ariel Maislos sold semiconductor startup Passave to PMC-Sierra for $300 million in 2006 and then exited flash memory maker Anobit to Apple for $350 million in 2012 before launching Stratoscale with CTO Etay Bogner. While Bogner’s exits are not as impressive as Maislos’, he did co-found virtualization developer Neocleus, which Intel acquired (for not very much) in 2014, and data security startup SofaWare, which Israeli giant Check Point bought in 2002 (though Bogner and his SofaWare co-founder ended up suing them).
When Geektime approached Qualcomm Ventures Senior Director Mony Hassid about why they decided to join their Series C round, he emphasized that the founders played a significant part in their decision to invest in Stratoscale. “We were impressed by Ariel and his management and professional teams. Everyone is talented and qualified.” Considering Maislos sold his last two companies, we asked Hassid whether he had longer range plans for Stratoscale. He answered, “Qualcomm Ventures invests in companies with distinct advantages aimed at very large markets, such as cloud and data center startups. We are confident that Stratoscale will go as far as possible.”
Maislos and Bogner founded Herzliya-based Stratoscale in 2013. So far, they have raised more than $70 million, including this most recent round of funding. This round will help them further expand their activities in North America and Europe, including growing its partner program of next generation data centers, PartnerFirst.