"They've been able to do what a lot of people can't in this climate," said Jesse Reyes, vice president of global product management for Venture Economics, a venture-research firm. "And given that this company is only 11 months old and the size of the deal, this is a significant private equity investment."
Sanrise's deal ranks in the top 10 funding rounds this year, according to Venture Economics.
The company, which began fund-raising efforts in January, expects the $115 million will be enough to take the company to profitability next year, said David Schneider, chief executive and co-founder.
"We were pleased we could raise this money in this macroeconomic environment," Schneider said. "This clearly poises us for leadership in our industry. It's all about execution and profitability now."
Sanrise derives its revenue from its outsourced global-storage management service, as well as through sales of its bundled hardware and software storage equipment that uses fiber optics, called storagecels. The company has more than 600 customers, ranging from Toyota to National Semiconductor. Schneider noted 90 percent of his business comes from customers using the storage-management service.
Under its storagetone e-services business, Sanrise is the second largest player among more than 30 companies, Schneider said. He added that Sanrise?s ability to increase its operations to meet customer demands and cut a customer's cost by 50 percent have helped push it into the upper ranks of the industry.
The fiber optics used in Sanrise's storagecels, meanwhile, are designed to increase the performance by twofold for both the primary storage and backup storage, he said.
Sanrise plans to use the funding to expand its fiber-optic data-storage network, in addition to increasing its operations overseas.
Crosspoint Venture Partners was the lead investor in the second round, along with ACON Venture Partners, Comdisco Ventures, Morgan Stanley Dean Witter Equity Funding, Exodus Communications, GATX Ventures, Global Innovation Partners, Greenbridge Partners, The Greenspun Corp., Hitachi Data Systems, Hitachi, Lighthouse Capital Partners, Morgan Keegan, Oasis Ventures and Veritas Software.
With this investment, the investors will hold a 63 percent stake in the company on a fully diluted basis. And representatives from Greenbridge Partners and Global Innovation Partners will get a seat on the board.
Crosspoint Venture was also the lead investor in Sanrise's first round, which raised $13 million last May. Crosspoint served as the incubator for growing Sanrise to the point it was able to venture out as an independent company, Schneider noted.