back to article File software-flinger Elastifile stretches funding further to $65m

Elastifile, an Israeli startup developing a distributed file system for hybrid clouds, has picked up $16m in a funding round led by Western Digital Capital. The other contributors are also heavyweights – Battery Ventures, CE Ventures, Cisco Investments, Dell Technologies, and Lightspeed Venture Partners. Total funding is said …

  1. Anonymous Coward
    Anonymous Coward

    What does this mean for Elastifile?

    Ah the dreaded down round of funding...ended up being less than half of the previous round.

    1. DeepStorage

      Smaller round not down round.

      A down round isn't, as you seem to believe, a funding round that raises less money than a previous round but a funding round that raises money at a lower VALUATION.

      This is a strategic investment from WD, more than a fundraise by Elastifile because they needed the money. As long as WD paid the same, or more, for each 1% of equity as the investors in the last round it's not a down round.

      To make the math easy if the $35million last round bought 35% of the company and the $16 million from WD 16% of the company that would be the same valuation if it bought 12% an up round.

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