Unified Network Storage Provider agàmi Folds After Burning Through $45 Million In 6 Months


This isn’t the prettiest of stories: Valleywag and the Mercury News are reporting that unified network storage startup agàmi Systems has left the building. The company is shutting down after raising a lot of money, most recently picking up $45 million in Series C financing.

Back then, the fundraising was led by Advanced Equities (recent reports about this particular VC firm itself have been far from positive either) with participation from current investors New Enterprise Associates (NEA), Kleiner Perkins, APEX Venture Partners, Alta Partners, TIF Ventures and Duff Ackerman Goodrich, and new investments from ITOCHU Corporation and David Stiles (CEO), and was going to be used to ramp up sales & marketing.

Too little, too late, apparently.

More than two weeks after the shutdown, agàmi’s Web site was still up and touting the company as “the leading provider of unified network storage solutions.”

The official word:

“Agami’s board has decided to shut the company down as the efforts to raise further capital didn’t materialize in time. It’s really unfortunate, but that is true,” said Sreekanti. “The company is going through a process of the liquidation of assets, so I don’t have anymore details than that.”

And the reaction from NetApp CEO Dan Warmenhoven:

“You don’t raise $45 million and then get shut down. That doesn’t make sense.”

Agàmi employed between 80 and 100 people, with most in Sunnyvale, some in Hyderabad, India. Questions remain whether Agami had burned through its funds or whether some of agàmi’s investors, pulled back money that was contingent on technology or sales progress.

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