April 24, 2001
- Chelmsford, MA
Paceline Systems, a developer of data center networking products, announced today it has received $20 million in financing from top-tier venture capitalists. The funds will enable Paceline to develop data center networking products based on InfiniBand(TM) technology, a new switching technology that interconnects servers, storage systems and communications equipment in a high performance network.
The series B financing was led by BancBoston Ventures and included Commonwealth Capital Ventures, Deutsche Banc Alex. Brown, Kodiak Venture Partners, Goldman Sachs and prominent individuals from the networking industry. The new funds will enable the company to expand its staff of experienced hardware and software engineers and to purchase product development materials. The company received $1.5 million in seed financing from Kodiak Venture Partners last year.
"We are pleased by the amount of financing that our product plans have attracted, especially considering the current capital market conditions," said Ed Mezzanotte, Paceline president and CEO. "This is a strong endorsement of the highly experienced management team we've assembled and the great potential in InfiniBand technology."
InfiniBand is a new I/O specification developed by the InfiniBand(SM) Trade Association, which is steered by major semiconductor and computer manufacturers. InfiniBand delivers a switched fabric technology for the interconnection of computers, peripherals and other devices installed in corporate data centers.
"It's no longer a question of if InfiniBand will happen, but when," said Steve Duplessie, founder and senior analyst, at The Enterprise Storage Group, Inc. "Given the immediate impact the technology will have on the broad market, it is critical that companies like Paceline are out front, allowing the user base to get immediate value out of InfiniBand technology. We think this sector could be a hyper-growth area within a few short years."
Paceline is developing switching systems that use new InfiniBand standards-based technology to achieve the highest levels of performance and scalability in the industry while also improving the efficiency of large data center networks. The company's products will reduce the cost of managing these increasingly complex environments and will significantly improve their reliability. IDC predicts the InfiniBand switch port opportunity will exceed $1 billion by 2004.