OuterBay boosts valuation with $12M

"Data storage software maker OuterBay Technologies Inc. has landed $12 million in Series C financing from previous investors and new lead investor Focus Ventures of Palo Alto, Calif.

Focus contributed $4.2 million to the round, which increased OuterBay's valuation by an undisclosed amount. Previous investors BA Venture Partners in Foster City, Calif., and LeapFrog Ventures, Mayfield and Redpoint Ventures, all based in Menlo Park, Calif., also participated.

"I think there's a roughly 50% chance OuterBay could get big enough to go public, or else one of the major players in the storage industry might acquire them," Bird said. "They are growing pretty rapidly, and their partnerships with EMC and Sybase [Inc.] make them pretty interesting."

[TheDeal.com]