Leveraging Theme Based Expertise: Identifying The Next Innovation

In 2008, leveraging its deep expertise in flash memory, storage and enterprise software, JVP identified a market gap in the enterprise software market – the need to leverage Flash memory, through solid state drive (SSD) products, as the next-generation storage devices into the enterprise and data centers. This new approach was based on the understanding that high performance storage would be required to support media and high-end enterprise applications prevailing today.

Over the next twelve months JVP actively set out to find a company that both had the vision and ability to create a disruptive technology bringing Flash-based storage solutions to enterprise storage. When JVP met XtremIO’s founding team of seasoned experts, the company was in the concept phase. JVP’s team worked closely with the company to assist them in transforming their idea into a viable and marketable product, working closely with the founders to complement the team with seasoned experts in the enterprise market. Moving ahead JVP, leveraging its partners’ expertise in the storage space, worked with management to help investigate, validate and develop the company’s business strategy as it expanded beyond the core technology. At the end of 2009, JVP invested in the Series A investment round, establishing itself as one of the largest shareholders, with more than 20% holding. The following year the company welcomed Fortune-500 company, EMC, as a Strategic Investor in the company. Over the ensuing two years, XtremIO developed and solidified its offering, as it built a next generation high-performance enterprise storage system based on Solid State Flash memory (SSD) storage. This solution aimed to serve customers using high performance, I/O intensive applications with high bandwidth throughput such as virtual machine hosting, relational and OLAP databases and media storage and streaming, addressing markets such as large financial institutions, governments and agencies, media and Internet giants. During these years, the company welcomed two US based VC funds into the fold, to partner in the company’s global expansion as it continued to develop its solution.

In May 2012 XtremIO was acquired by EMC, a mere 2.5 years from initial investment, for $435 million, reflecting a substantial multiple on JVP’s investment.

Epilogue: In recent years, JVP invested with new companies that originated from the XtremIO founding team, as these industry veterans came back into the market with numerous new companies and disruptive technologies.

Leveraging Theme Based Expertise: Identifying the Next Innovation

2012 (EMC)