Contact

Get in touch
with us

Disclaimer

Disclaimer Text here

News & Insights

11/13/2017

Irrational Fear of the Down Round and Long-Term Implications

The appreciation of valuations in the technology sector after the 2008 correction has resulted in the entry of new types of investors into the venture/growth category.

MENLO PARK, CA – November 13, 2017 – The appreciation of valuations in the technology sector after the 2008 correction has resulted in the entry of new types of investors into the venture/growth category. For a few high-profile companies there seems to be unlimited amounts of capital available at attractive terms, which continue to drive up valuations and competition amongst more traditional growth equity investors. Despite this tremendous influx of capital into a small segment of the market, investors in general are increasingly focused on sound financial metrics (e.g., sustained growth, low dollar churn, healthy margin structure, etc.) when deploying capital. As a result, a greater number of companies have been exploring newer non-traditional financing sources. While some of these deals solve immediate cash needs, many fail to address the root cause of the problem and can impair a company’s ability to raise subsequent rounds or attract additional talent within the organization.

Technology companies fear the “down round,” a scenario where capital is invested at a valuation lower than a previous round. For later stage companies with lofty valuations and broader market awareness, a down round is public evidence that the business is not progressing as originally anticipated. While most investors are aware of the implications of down rounds, flat insider-led rounds have become a less obvious indicator of distress as companies fail to convince outside investors that the investment opportunity merits even a modest markup from the previous valuation. As a result, valuation sensitive companies in need of financing are increasingly considering non-traditional sources of capital that provide valuation flexibility in exchange for more onerous debt-like terms mainly to avoid the stigma of a down round.

The Risks of Non-Traditional Financing Alternatives

What many companies fail to recognize is that some non-traditional financing alternatives are purely risk-adjusted bets from investors that do not have the resources, expertise or patience traditionally indicative of the venture capital asset class. If growth does not continue as predicted, a downward spiral can be accelerated by a cap table with onerous quasi-debt terms and an investor that is not as willing or able to work through challenges with the management teams. At the first sign of weakness in a company, non-traditional investors often retain operating executives to “manage” the asset in order to maximize near term returns to the detriment of other shareholders. Furthermore, it is difficult in practice to refinance out non-traditional investors because new equity investors prefer funding growth vs. paying down debt.

While a down round is not ideal, it is sometimes necessary to reset expectations and create stronger alignment between investors and employees. It can also be in the best interest of the remaining management team to fix a broken cap structure to redistribute value to employees and in the process help attract new talent to the business. A dose of valuation reality combined with better alignment is not something that should be feared.

Capital comes in many forms, and it is paramount that teams and companies consider the long-term impact of additional financing that does not always address the greater need for realignment among stakeholders and an increased focus on fundamental financial metrics. If all the stakeholders in a company focus on running an operationally-healthy business that can control its own destiny, management teams will not have to rely on non-traditional sources of capital that do not provide value beyond the invested capital.

--
John Kim is a co-founder and Managing Partner of HighBar Partners, a private investment firm focused on enterprise and infrastructure software companies undergoing change or transition. HighBar provides patient, long-term capital and resources to fund growth and assist management teams with financial, strategic and operational execution.

09/25/2017

PatientSafe Solutions Closes $25 million Growth Funding Led by HighBar Partners

PatientSafe Solutions, a leader in mobile clinical workflow and communication solutions, announced today that it has closed a $25 million round of financing.

SAN DIEGO, CA PatientSafe Solutions, a leader in mobile clinical workflow and communication solutions, announced today that it has closed a $25 million round of financing. PatientSafe plans to use the funds to further scale operations, accelerate sales and customer success, and drive further innovation in clinical communications and care delivery.

The round was led by HighBar Partners with participation from existing investors Merck Global Health Innovation Fund, Camden Partners, Psilos Group, and TPG. The investors share PatientSafe’s vision of a simple and effective care experience enabled by an outcome-driven, mobile-enabled platform at the point-of-care.

“The success of PatientSafe highlights the value that an enterprise-grade clinical workflow and communication platform brings to its customers by improving clinician satisfaction, care team productivity, and patient safety in the post-EMR era,” said John Kim, Co-founder and Managing Partner of HighBar Partners. “We are excited to partner with the PatientSafe team to expand go-to-market capabilities, identify product acquisition opportunities, and continue to foster long-term relationships with leading healthcare organizations throughout the country and internationally.”

Founded in 2002, PatientSafe focuses on empowering care teams to communicate and work together reliably and efficiently through its PatientTouch® platform. PatientTouch is the only mobile platform that unifies clinical communications with critical workflows in a single application for more than 80 leading healthcare institutions.

“We are excited to announce this latest round of funding led by experienced enterprise software investors who support a methodical, long-term approach to building high-impact and sustainable businesses in the healthcare setting,” said Si Luo, president and CEO, PatientSafe. “This latest funding strengthens our ability to serve large-scale enterprise customers while continuing to develop and deploy a patient-centric communications and workflow network that unifies the patient, family, and care team across the continuum of care.”

About PatientSafe Solutions:

PatientSafe Solutions (San Diego, California) obsesses over the experience of care to help care teams communicate and work together reliably and efficiently. PatientSafe delivers measurable safety and quality improvements through a mobile platform that extends an organization’s EHR, clinical, and communication infrastructure and fits seamlessly into care team workflows. The company’s context-driven PatientTouch® platform unifies communication with workflow by consolidating text, talk, alerts, EMR data, clinical workflows and customizable care interventions, all in one mobile app, on one device. For more than a decade, PatientTouch has helped clinicians both in and outside the hospital streamline care delivery, increase quality, and lower costs. For more information, please visit the company’s website at patientsafesolutions.com.

08/10/2017

HighBar Partners Raises $208 Million for HighBar Partners III, L.P.

HighBar Partners (“HighBar” or the “Firm”) is pleased to announce the $208 million final close of HighBar Partners III, L.P. (“HighBar III” or the “Fund”), above an agreed upon hard cap of $200 million.

MENLO PARK, CA, August 10, 2017 – HighBar Partners (“HighBar” or the “Firm”) is pleased to announce the $208 million final close of HighBar Partners III, L.P. (“HighBar III” or the “Fund”), above an agreed upon hard cap of $200 million.

HighBar specializes in operationally and strategically-focused investments in enterprise and infrastructure software and software-as-a-service companies. The Firm’s unique investment model and resources make it an ideal partner when evaluating and structuring investments in companies undergoing complex strategic, financial or operational change. HighBar III will continue a sector-driven approach to investing in situations where the Firm can contribute significant resources to technology companies that are experiencing business transformations.

“We are fortunate to have the support of an impressive group of limited partners who believe in HighBar’s differentiated approach and strategy,” said John Kim, Managing Partner. “The team is well-positioned with a unique set of skills to deploy the Fund into a number of new and exciting opportunities.”

HighBar III adds leading global institutions to an already distinguished list of existing investors and will allow the Firm to target larger deals with new co-investment partners.

The Fund has made two investments: Virtual Instruments, an infrastructure performance management platform, and Janrain, a customer identity and access management solution.

Capstone Partners served as exclusive placement agent for HighBar Partners III, L.P., and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP provided legal counsel.

About HighBar Partners

HighBar Partners (www.highbarpartners.com) is a private investment firm focused on strategic growth capital investments in enterprise and infrastructure software companies. The firm invests in companies undergoing significant change or transition and provides patient, long-term capital to build successful businesses. HighBar is a creative and engaged partner with resources and relationships to assist management teams with financial, strategic and operational execution. HighBar’s principals have founded, operated or invested in over 100 companies in the technology sector.

07/24/2017

HighBar Partners Hosts 2017 Marketing Summit

On Tuesday, July 18th, HighBar Partners hosted a Marketing summit for enterprise software executives. Attended by a select group of marketing executives from leading software companies, the event included a featured speaker, presentations, working sessions, and networking opportunities

On Tuesday, July 18th, HighBar Partners hosted a Marketing summit for enterprise software executives. Attended by a select group of marketing executives from leading software companies, the event included a featured speaker, presentations, working sessions, and networking opportunities. Discussion topics included:

Account Based Marketing (ABM) – discussion led by Craig Rosenberg, Co-Founder and Chief Analyst at TOPO Inc.
Marketing KPIs
Sales Development Reps (SDRs)
Marketing technology tools

HighBar Partners’ summits promote deep discussion of relevant topics, and leverage the experience of all participants. Upcoming summits will focus on the areas of sales and alliances. For those interested in participating in a future HighBar Partners summit, please inquire at summits@highbarpartners.com.

05/30/2017

Empowering Portfolio Company Executives

Private company investors strive to empower their executive teams and enhance the performance of their portfolio companies.

MENLO PARK, CA – May 30, 2017 – Private company investors strive to empower their executive teams and enhance the performance of their portfolio companies. Good intentions, however, are poor substitutes for good deeds, so the question that founders and executives should ask is “what are the fundamental principles that enable an investor to convert those worthy goals into reality?” Below are a few points we believe are paramount in achieving an optimal outcome for all involved.

Objectivity.  Investors expect thorough and correct analysis from portfolio companies, but sometimes fail to apply the same rigor when providing feedback to those same companies. A classic example is when investors use instincts and opinions, rather than facts, to “measure” executive performance. Judgments made without concrete data invite skepticism, and can be harmful and counterproductive. Conversely, establishing objective measures of executive performance and referencing factual evidence can empower individuals to solve problems and create value, and at the same time avoid the surprising amount of time that executives spend wondering if investors are truly supportive of their efforts. The message is simple: stick to the facts – it’s not a popularity contest!

Transparency.  In similar fashion, investors appreciate visibility into the operations of their companies but are sometimes unwilling to reciprocate. One example is strategic misalignment: investors may guide companies to pursue growth at the expense of fiscal discipline without explaining the considerable downside risks of such a strategy or the priorities driving it. Without this visibility, company executives have difficulty making risk/reward tradeoffs in their businesses. Transparency with respect to the realities of the market for private capital and higher volatility outcomes helps executives to embrace both the rewards and the real risks involved for themselves, their employees and their investors. A person cannot be empowered to optimize outcomes without understanding the rules of engagement.

Consistent messaging. Investors typically are genuine when trying to provide guidance. Depending on the number of individuals in the board room, however, and their respective understanding of the business, guidance can be confusing and even contradictory. Executive teams can become paralyzed while attempting to satisfy differing directives and, in the process, dilute their efforts. The preferable option is to ensure concise and consistent messaging to the company. Clear communication empowers a team to deliver on the most critical undertakings.

Connectivity. If for no other reason than frequency of interaction, investors in private companies typically build the deepest relationships with the CEO.  An investor’s ability to empower the entire executive team, however, absolutely requires a better understanding of each individual. Underinvesting time and energy in other executives is a mistake for many reasons, the most obvious of which is an executive team that is not inspired to succeed.

Engagement.  For those investment firms designed to focus material time and attention on each portfolio company, there is another opportunity to inspire confidence in executive teams. Proving that you are an engaged investor willing to follow through on specific initiatives fosters trust and belief in the partnership. As a secondary effect, deep engagement and trust allows for more honest and open information exchange in real-time. Challenging times are inevitable along the journey of building a business, and helping teams feel that they are not alone is surprisingly effective.

Admittedly, it can be difficult to execute on the principles described.  At HighBar, we endeavor to succeed in each of these areas as fundamental underpinnings of our interactions with our executive teams. We believe that executives that know they are treated in a fair and consistent manner can better focus on the work that drives value for all of us.

--
Chris Kitching is an Operating Partner of HighBar Partners, a private investment firm focused on enterprise and infrastructure software companies undergoing change or transition. HighBar provides patient, long-term capital and resources to fund growth and assist management teams with financial, strategic and operational execution.

03/29/2016

Virtual Instruments Merges with Load DynamiX; Secures $20 Million Investment

Virtual Instruments, the market leader in real-time infrastructure performance management, and Load DynamiX, the leader in storage performance analytics, today announced that they have entered into a definitive agreement under which the companies will merge to create the industry’s first end-to-end infrastructure DevOps platform.

Virtual Instruments, the market leader in real-time infrastructure performance management, and Load DynamiX, the leader in storage performance analytics, today announced that they have entered into a definitive agreement under which the companies will merge to create the industry’s first end-to-end infrastructure DevOps platform.

To accelerate joint innovation in the multi-billion-dollar IT infrastructure market, HighBar Partners will lead a new $20 million investment round into the combined company. Additional investors in the new company include Azure Capital Partners, Kinetic Ventures and Benhamou Global Ventures, the investment fund founded by Eric Benhamou, former CEO of 3Com.

Under the terms of the deal, the combined entity will retain the name Virtual Instruments and will be led by Philippe Vincent, the current president and CEO of Load DynamiX. The combination will enable Virtual Instruments to offer new and existing customers the only comprehensive end-to-end infrastructure performance analytics product portfolio, capable of delivering actionable infrastructure performance insights across physical, virtual and cloud environments.

Together, Virtual Instruments and Load DynamiX will help customers proactively address the IT imperative to achieve lower cost structures and higher levels of performance within increasingly complex and disparate IT environments. Today, enterprises lack a holistic view of how application workloads interact with their underlying infrastructure. No two workloads are alike, and every data center is unique, irrespective of investments in flash, software-defined, cloud and converged technologies. Virtual Instruments offers the deepest workload visibility and storage infrastructure performance analytics to support the next-generation agile business environment.

“By merging the undisputed leaders in infrastructure performance management and storage performance analytics, we’ve created a combination of solutions that no one else in the industry comes close to offering,” said Philippe Vincent, CEO of Load DynamiX. “Given the complementarity of our leadership teams and products, our customers and partners view this as the logical next step in our evolution into the new Virtual Instruments.”

“The merger of these two companies is employee and customer driven,” said John Thompson, CEO of Virtual Instruments. “The synergies across combined product portfolios are extremely positive and should deliver real value to our combined customer base.”

“Visibility into the infrastructure to analyze performance is critical for enterprises as they deploy complex heterogeneous technologies in hybrid on-premise and cloud environments,” said John Kim, Managing Partner at HighBar Partners. “The merger of Virtual Instruments and Load DynamiX solidifies our leadership position and creates an innovative and powerful platform to advance our goal of delivering end-to-end infrastructure performance management to our customers.”

Virtual Instruments and Load DynamiX customers have continually asked for tighter integration between the two companies’ products, and the merger responds to that demand. Virtual Instruments’ VirtualWisdom platform analyzes the performance of the production infrastructure for IT operations, while Load DynamiX delivers the storage workload acquisition, analysis and modeling capabilities IT engineering and architecture teams need. Together, the technologies offer the best infrastructure instrumentation and performance analytics in the data center.

Selected Industry Reaction to the Merger

“The combination of Virtual Instruments’ deep application and infrastructure management tools combined with Load DynamiX’s performance analytics and modeling tools can help enterprises gain the insight required to intelligently manage and evolve their infrastructures. This combination will provide customers with a comprehensive view of their infrastructure to help find trouble spots before they occur and to rightsize technology acquisitions.”
– Henry Baltazar, Senior Analyst at 451 Research

“Arun Taneja, founder, president and consulting analyst of Taneja Group, said, “I have known and worked with both Virtual Instruments and Load DynamiX since their inceptions in 2008. I have spoken to many of their customers over the years and the value of combining the two companies is both compelling and obvious. The infrastructure visibility and performance analytics that the new Virtual Instruments provide will help enterprises dramatically reduce costs, assure performance and de-risk their transformations.”
– Arun Taneja, Founder, President and Consulting Analyst at Taneja Group

About Load DynamiX

Load DynamiX is a storage performance analytics innovator, providing unique insight into application workload performance that empowers data storage professionals to optimize costs and assure performance by more intelligently deploying and troubleshooting storage infrastructure. The combination of advanced workload analysis and modeling software with extreme workload generation appliances gives IT professionals the ability to cost-effectively validate and stress today’s most complex physical, virtual and cloud infrastructure to its limits. For more information, visit http://www.loaddynamix.com.

About Virtual Instruments
Virtual Instruments delivers the industry’s leading analytics platform for Infrastructure Performance Management. VirtualWisdom® empowers customers to deliver on the complex requirements of their application infrastructure. The platform provides insights into the performance and availability of the end-to-end system across physical, virtual and cloud environments. VirtualWisdom intelligently captures, correlates and analyzes an unmatched breadth and depth of data, transforming data into answers and actionable insights. This allows the promotion and guarantee of performance-based service-level agreements, changing the value of the infrastructure. With these insights, customers can take control of their environments, accurately inform collaborative dialogues and drive business outcomes. For more information, visit http://www.virtualinstruments.com.

12/17/2015

Janrain Closes $27 Million in Series D Funding Led by HighBar Partners

Janrain, the leading provider of Customer Identity Management Solutions, announced today that it has secured $27 million in Series D funding led by HighBar Partners, with participation from existing investors Millennium Technology Value Partners, Split Rock Partners, Epic Ventures, Emergence Capital, RPM Ventures and DFJ Frontier.

Janrain, the leading provider of Customer Identity Management Solutions, announced today that it has secured $27 million in Series D funding led by HighBar Partners, with participation from existing investors Millennium Technology Value Partners, Split Rock Partners, Epic Ventures, Emergence Capital, RPM Ventures and DFJ Frontier. The new funding will enable Janrain to continue building upon its industry-leading Customer Identity Management Platform while broadening its scope to include deeper analytic insight into user engagement.

Founded by Larry Drebes, Janrain securely manages customer data for more than 2,000 global organizations in over 70 countries. Customers, including many top Fortune 500 multi-national companies, choose Janrain because of its ability to capture and protect data at massive global scale in an environment of heightened data privacy concerns and regulation. The new funding will be used to further build out Janrain’s data analytics capabilities by enriching existing customer data with relevant and actionable behavioral and cross-channel insights.

“We see our core Customer Identity platform as the clear leader in a rapidly-growing market,” said Larry Drebes, founder and CEO of Janrain. “The organization today is structured to serve that market efficiently, which then allows us to look at adjacent problems and areas of expansion. Janrain recently added robust Engagement functionality to its platform, and the Company sees a number of similar opportunities in the market as enterprises look for new ways to activate their audiences and offer a wider variety of identity-based marketing use cases.”

“Janrain has a talented management team and the most scalable, enterprise-ready solution for Customer Identity Management,” said John Kim, Co-Founder and Managing Partner at HighBar Partners. “Its list of blue-chip global brands and customers reinforces our belief in the platform’s technical maturity and natural evolution toward a deeper, more synchronized view of consumer behavior. We are excited to partner with the Janrain team and current investors to further advance the next generation of marketing solutions.” As part of the transaction, John Kim will be joining Janrain’s Board of Directors.

To learn more about Janrain and its Customer Identity Management solutions, please visit www.janrain.com.

About HighBar Partners:

HighBar Partners is a private investment firm that provides strategic growth capital to enterprise and infrastructure software companies. We are a creative and engaged investor with resources and relationships to assist management teams with financial, strategic and operational execution. Our professionals employ a disciplined owner-operator investing philosophy that stems from founding, operating and investing in over 100 companies in the technology sector. We structure our investments to align all stakeholders and work in partnership with management teams and co-investors to fund growth and develop significant value beyond the financing.

About Janrain:

Janrain makes it easy to know your customers and personalize every interaction. Our Customer Identity Management Platform helps companies build a unified view of its customers across all devices by collecting accurate customer profile data to power personalized marketing. The platform encompasses social login, registration, customer profile data storage, customer insights, single sign-on, and engagement. Janrain powers customer identity management for brands like Pfizer, AMC, Samsung, Whole Foods, Fox News, Philips, Marvel, Mattel and Dr. Pepper. Founded in 2005, Janrain is based in Portland, Oregon, with offices in London, Paris, and Redwood City, CA. For more information, please visit www.janrain.com and follow @janrain.

For Janrain Inquiries:
Sharon Lodewick
Director, Marketing Communications
503.488.6754
press@janrain.com

07/29/2015

Autotask Expands Offerings with Acquisition of Soonr to Provide Cloud File Sharing and Collaboration Solutions for Business

Autotask Corporation, the world’s leading provider of hosted IT business management technology, has agreed to acquire Soonr, a leading provider of enterprise secure file sharing and collaboration services for IT business managers.

Autotask Corporation, the world’s leading provider of hosted IT business management technology, has agreed to acquire Soonr, a leading provider of enterprise secure file sharing and collaboration services for IT business managers. Soonr offers a file sharing and synchronization (FSS) solution with enterprise-grade functionality in a hybrid-cloud environment. The Soonr solution improves business continuity and reduces risk through better security, flexibility, productivity and collaboration of end-client data.

“Autotask delivers innovative offerings that manage mission-critical business processes for our customers. This acquisition fits perfectly within that objective and represents a significant managed services’ revenue opportunity for all MSPs and ITSPs,” said Mark Cattini, President and CEO of Autotask. “FSS is a fundamental element of business continuity that ITSPs are expected to provide. Soonr provides a HIPAA-compliant, SaaS solution with 99.99 percent uptime that is IT-approved, easy to deploy, and simple to use.”

As enterprises look for secure ways to manage their data with administrator controls, Soonr has been designed specifically to address these requirements and offers significant advantages over consumer-based products, such as enterprise-grade configurable security, collaboration capabilities and data privacy certifications. Soonr improves the end-client experience and increases loyalty by enabling technology service providers to securely and effectively manage valuable data flows.

“Autotask provides IT business management software that allows customers to deliver technology services more efficiently,” said Ahmet Tuncay, CEO of Soonr. “We are thrilled to be part of the Autotask team and to enable Autotask’s end-clients to improve productivity with better mobility and data protection assurance.”

The Jordan Edmiston Group, Inc., acted as the financial advisor to Soonr in the transaction. For additional information about the acquisition, go to http://www.autotask.com/soonr.

About Soonr
Founded in 2005, Soonr is headquartered in Silicon Valley, California with an additional office in Denmark. Soonr’s mission is to make organizations more productive and competitive by securely connecting office and mobile workers and their critical information. Soonr file sharing and collaboration services have been in commercial production since early 2007 without a single security breach or a data loss incident.

About Autotask Corporation
Autotask Corporation helps IT organizations worldwide work smarter with a complete, cloud-based IT business management platform that enables efficiency, accountability and access to the metrics that drive intelligent business decisions. With built-in best practices and workflow automation, Autotask speeds time to revenue while continually improving service delivery. Autotask is available in seven languages and used in over 90 countries. Headquartered in New York, Autotask has offices in Beijing, Chicago, Dallas, London, Los Angeles, Munich and Sydney. Visit autotask.com for more information.

Autotask® is a registered trademark of Autotask Corporation. All other trademarks mentioned in this document are the property of their respective owners.

05/21/2014

Load DynamiX Raises $12 Million Financing Round Led by HighBar Partners

Load DynamiX, the leader in storage infrastructure performance validation, announced today that it has raised a $12 million round of funding, led by HighBar Partners.

Load DynamiX, the leader in storage infrastructure performance validation, announced today that it has raised a $12 million round of funding, led by HighBar Partners.

Having established itself as the leading supplier of storage performance validation solutions to the storage and network technology vendors, Load DynamiX expanded its focus to enterprise IT and cloud service provider organizations in 2013. The company recently released the Load DynamiX Enterprise Series solutions that combine advanced storage workload modeling and extreme load generation into an integrated 2RU appliance designed to meet the needs of Global 1000 companies.

The company’s enhanced product line now provides deep storage infrastructure insight that enables IT managers and architects to optimize the performance, availability and cost of their networked storage infrastructures. The company’s goal is to help accelerate the adoption of new storage technologies, such as flash storage, and eliminate the risk of performance problems via its advanced workload modeling and performance validation solutions.

“Storage architects and engineers are demanding a new level of insight into their infrastructure as they migrate to an Infrastructure as a Service (IaaS) model for their public and private clouds. In order to meet their performance, availability and cost objectives, new storage systems and technologies, including flash storage, must be tested, analyzed and validated before production deployment,” said Philippe Vincent, CEO of Load DynamiX. “Our storage workload modeling and performance validation appliances are the only way to properly plan and deploy these new storage technologies without the risk of unpredictable response times, unplanned outages and uncontrolled over-investment in equipment.”

“The storage industry is going through one of the biggest transitions in decades, with flash and hybrid storage systems driving significant disruption to the status quo. Fully understanding the performance impact and ROI of these technologies is becoming essential to IT architects,” said John Kim, Co-Founder and Managing Partner at HighBar Partners. “We were very impressed with how Load DynamiX is uniquely providing this insight as evidenced by the excitement of their customers and their successful expansion into enterprise IT.”

In conjunction with the financing, John Kim and HighBar Managing Director Rohit Malhotra have joined the Load DynamiX Board of Directors.

Founded in 2008 as SwiftTest, Load DynamiX expanded on its strategic direction and changed its name in late 2013.

About Load DynamiX:

As the leader in infrastructure performance validation, Load DynamiX empowers IT professionals with the insight needed to make intelligent decisions regarding networked storage. By accurately characterizing and emulating real-world application behavior, Load DynamiX optimizes the overall performance, availability and cost of storage infrastructure. The combination of advanced workload analytics and modeling software with extreme load-generating appliances give IT professionals the ability to cost-effectively validate and stress today’s most complex physical, virtual and cloud infrastructures to their limits. Visit www.loaddynamix.com for more information.

11/06/2013

Xangati Raises $11 Million Financing Round Led by HighBar Partners

New funding from HighBar, with participation from Citrix, allows Xangati to further innovate and accelerate market momentum of its popular VDI, workload and cloud performance management solutions.

New funding from HighBar, with participation from Citrix, allows Xangati to further innovate and accelerate market momentum of its popular VDI, workload and cloud performance management solutions.

Xangati, a leading provider of cloud and workload performance management solutions announced that it has raised $11M in funding led by HighBar Partners with participation from Citrix.

Since its founding in late-2006, Xangati has consistently delivered unprecedented live performance management valued by IT administrators to proactively detect and correct performance bottlenecks that otherwise would take them days of complex analysis to discover. Unlike most performance management solutions that give a static and stale view of IT metrics, Xangati collects and collates more than a million metrics and interactions per second and intimately understands the causality of the behavior and interactions between objects across silos.

The Xangati advantage provides unparalleled second-by-second insights coupled with automated alerts and remediation recommendations – giving cloud and VDI administrators a DVR-like recording instead of a static snapshot from which to proactively manage the performance of their infrastructure.

“Virtualized workloads offer a complex and intertwined infrastructure that requires a new paradigm of performance management. We have carefully designed the Xangati solution to not only highlight where the performance bottlenecks are in the infrastructure, but also show why they are taking place and how to remediate them,” said Jagan Jagannathan, Founder, CTO & acting CEO of Xangati. “We are pleased to have raised $11 million from HighBar Partners with participation from Citrix. We plan to use the funding to further accelerate our innovation and market adoption.”

“Xangati’s ground breaking technology solves a very real problem – indeterminate performance issues that plague virtualized cloud environments today,” said Roy Thiele-Sardina, Managing Partner at Highbar Partners.“We are impressed with the progress the company has made so far and look forward to their future growth and innovation.”

Roy Thiele-Sardina and John Kim, both Managing Partners at HighBar, have joined the Xangati board.

“Xangati has the unique advantage of collecting intelligence at all levels of the infrastructure and analyzing it to offer highly valuable insights,” said Andy Cohen, VP, Strategic Development at Citrix.“We look forward to solutions that Xangati can offer in a data driven world.”

Additional Resources:
Website: http://www.xangati.com
Videos: http://www.youtube.com/xangati
twitter: @XangatiPress
LinkedIn: http://www.linkedin.com/company/xangati
Customer Case Studies and Testimonials: http://xangati.com/customers
Sales Inquiries: sales@xangati.com

About Xangati:
Xangati is the recognized leader for cloud and workload performance management solutions. Over 300 customers among enterprises, government agencies, healthcare organizations, educational systems and cloud providers use Xangati’s solutions to gain unprecedented performance management of their cloud and VDI environments. Xangati’s solutions built on patented technology proactively track the health of key IT metrics that impact the performance of applications and users, accurately diagnose the cause of any performance bottleneck and recommend remedial action when a bottleneck is discovered. Organizations like Ebay, Comcast, British Gas, Guess, Colliers International, Univita Health, Harvard University and the US Army use the Xangati Management Dashboard suite of solutions with its massively scalable live and continuous recording ability to ensure their business-critical applications perform at optimal levels. Xangati is headquartered in Silicon Valley and can be found online at www.xangati.com.

08/19/2013

Clustrix Raises $10 Million Financing Round Led by HighBar Partners

Clustrix, the leading scale-out SQL database engineered for the cloud, announced today that it has closed a $10 million Series D financing round led by HighBar Partners (“HighBar”).

Clustrix, the leading scale-out SQL database engineered for the cloud, announced today that it has closed a $10 million Series D financing round led by HighBar Partners (“HighBar”). The new funding will be used to further product development for Clustrix and support its rapidly growing customer base worldwide. This represents the company’s fourth round of funding, bringing the total capital raised to $56.5 million.

HighBar joins existing investors Sequoia Capital, U.S. Venture Partners, ATA Ventures and Don Listwin, founder of Canary Foundation and former executive at Cisco and CEO of OpenWave. The board of directors welcomes new members John Kim and Roy Thiele-Sardina, Managing Partners of HighBar, and Mike Hodges of ATA Ventures.

“The need for operational databases that can analyze data in real-time has never been greater with the rapid growth of new hyperscale applications in business segments such as e-commerce, online gaming and advertisement,” said Clustrix CEO Robin Purohit. “The additional funding will allow to aggressively pursue the rapidly growing MySQL/NewSQL market with our proven scale-out database technology.”

Clustrix is a distributed SQL relational database that enables high-scale transaction throughput, real-time analytics and simplified operations. Clustrix has been serving production workloads since 2008 and powers dozens of large-scale production customers around the world, including AOL, Rakuten Global Markets, and Symantec.

“With a solid product and the backing of executive leadership and investors, Clustrix is positioned as a game-changer,” said John Kim, Managing Partner of HighBar. “We look forward to working with the Clustrix team to accelerate growth as they address the need for high-performance and scalable SQL databases.”

About Clustrix

Clustrix is the leading scale-out SQL database, engineered for the cloud. Clustrix provides a radically simple SQL database that enables applications to scale to unlimited users, transactions and data, while eliminating database sharding and automating fault tolerance. Clustrix software is in production both as an appliance and on Amazon Web Services with more than one trillion transactions per month running through Clustrix databases worldwide. Customers include Rakuten, CSC, Symantec, AOL, MakeMyTrip, Photobox, MedExpert, engage:BDR, AdScience, and Massive Media.

Clustrix has its headquarters in San Francisco, with branch offices in Seattle and London. It was founded and is led by executives from Isilon, AOL, HP, Mercury Interactive and Veritas, and it is backed by HighBar Partners, Sequoia Capital, U.S. Venture Partners, Don Listwin, and ATA Ventures. To learn more about Clustrix,visit www.clustrix.com

Media Contact
Sarah Saul for Clustrix
LEWIS PR
415-432-2453
sarah.saul@lewispr.com

06/26/2013

HighBar Partners Closes $130 Million Strategic Growth Capital Fund

HighBar Partners (together with its affiliates,

HighBar Partners (together with its affiliates, "HighBar") today announced the closing of its strategic growth capital fund, HighBar Partners II, L.P. ("HighBar II" or the "Fund"), with $130 million in equity commitments. HighBar II was oversubscribed, exceeding its original target of $100 million to reach its hard cap.

HighBar specializes in operationally and strategically focused investments in enterprise and infrastructure software and software-as-a-service companies. The firm's unique investment model and resources make it an ideal partner when evaluating and structuring investments in companies undergoing complex strategic, financial or operational change. HighBar II will build on the strategy of HighBar's earlier vehicles, a sector-driven approach to investing in situations where it can contribute significant resources to technology companies that are experiencing business transformations. HighBar II investors consist of some of the largest global institutions, including public pension funds, endowments and foundations, fund-of-funds, financial institutions and family offices.

"We are pleased to have received such significant interest from a distinguished group of investors for our first institutional investment fund. We seek to deliver returns that help our management teams, co-investors and limited partners reach and exceed their goals," said John Kim, Managing Partner at HighBar. "Our unique model and resources will help us continue HighBar's success targeting technology opportunities where we can contribute patient capital, strategic and operational guidance, and execution," said Roy Thiele-Sardina, Managing Partner at HighBar.
HighBar was originally formed as a personal investment vehicle for three executives who were part of the founding teams at Sun Microsystems and Brocade Communications Systems. HighBar has since grown into an institutional firm with investment and operating executives who work closely with the firm's portfolio companies during the evaluation, planning and execution phases of development.

The Fund has already made four investments: Blazent, an IT service management and data analytics software company; Soonr, a cloud collaboration and content management solution provider; Vyatta, a software-defined-networking business that was sold to Brocade in 2012; and Zettaset, a Hadoop infrastructure and management software for large-scale enterprise deployments.

Gunderson, Dettmer, Stough, Villeneuve, Franklin & Hachigian LLP served as legal counsel.