All-flash upstart Kaminario trousers $53m, spills scale-up secrets

Kaminario has picked up $53m in an E-round of funding, taking total funding to $128m and signalling the startup's backers are convinced its low cost/GB and scale-up/scale-out architecture will give it the growth goodies. In comparison, fellow all-flash array startup Pure Storage is the funding champion with $450m and SolidFire …

[dan1980]

". . . clearly think the biz has what it's going to take to succeed in the all-flash array business."

The question I have is: what does 'succeed' mean? Is it becoming a viable, profitable company? Or is it being bought by a bigger player for a large amount?

It seems that venture capital firms have no interest in seeing a company grow in anything even approaching an organic fashion. It's all grow, grow, grow - grab market share and profits will come later. Or, you'll be acquired.

I wonder which of the two scenarios is actually the one the VCs are hoping for. I presume they are looking for a return on their investment in a relatively short term so being acquired for an obscene amount is presumably the best possible outcome.

Maybe I am just cynical. Well, I am cynical but perhaps that is clouding my opinions.

[Trevor_Pott]

Hi, maybe I can help some.

I think the answer to your question is "either/or". For the VCs - and typically most founders - "suceed" in the market means "have a profitable exit". That exit can be IPO, or it can be acquisition. But the point is that you get 5-10x out what you put in (time or money wise, where time is calculated at what you could command working full time for someone else.)

Remember that most founders don't stay with their "baby" past the contractual period after acquisition. They have their money, and they're going to go roll the dice one more time and try to make another startup, get more money.

The thing you have to remember is that the people who start SV startups chafe under the rules and restraints of big business. They want to be free to innovate, make their own choices...and mistakes. The startup life is a lifestyle as much as anything. It's about the freedom as much as the money.

So for VCs, all that matters is the money, but for execs the money is the means to the end of going back and doing it all over again.