Company in the newsAxxana, a data storage and recovery specialist raises $9 million

Published 20 November 2009

Axxana, an Israeli developer of data disaster recovery solutions, has raised $9 million in Series B funding; Carmel Ventures led the round, and was joined by return backers Gemini Israel Funds and serial investor Moshe Yanai

There are many reasons — natural disasters, terrorism, globalization — for businesses to be more concerned with the safety of the data on which the business operations depend — and with the ability to recover that data, unharmed, in the event of a disaster. Carmel Ventures agrees, and sees a business opportunity in this growing concern. The other day the VC announced it has led a $9 million Series B investment in Axxana. Axxana’s existing investors, Gemini Israel Funds and the serial entrepreneur Moshe Yanai, also participated in the round. The funds will be used to accelerate the adoption of The Phoenix System — the first Black Box Enterprise Data Recorder (EDR). Ronen Nir, partner of Carmel Ventures, joined Axxana’s Board of Directors.

Axxana was founded by Alex Winokur, Eli Efrat, and Dan Hochberg, veterans of the data storage industry, to address the No. 1 challenge in data protection: recovering data with zero data loss over any distance. Axxana’s first EDR (Enterprise Data Recorder) product, the Phoenix System RP, was demonstrated at EMC World in May 2009.

Axxana’s EDR brings a disruptive solution that is well poised to transform the entire storage replication market and create a whole new category within it,” said Ronen Nir, partner at Carmel Ventures. “We are impressed with Axxana’s strong founding team and their achievements so far, including impressive endorsement by leading storage vendors worldwide. We look forward to joining their existing investors in supporting Axxana to become a leader in this fast growing market.”

This round of investment demonstrates continued confidence in the strength of our technology and its enormous market potential,” said Eli Efrat, Axxana’s CEO. “It is a significant validation of our business strategy and product roadmap. The ability to provide organizations with zero data loss over any distance, combined with an affordable price tag, ensures that SMEs and large enterprises no longer have to compromise their disaster recovery solution.”

Axxana’s first product to the market is the Phoenix System RP, which the company claims is the only product to enable 100 percent disaster recovery with zero data loss (RPO=0) over any distance, for significantly less than the cost of traditional data mirroring alternatives. The Phoenix System RP complements the asynchronous replication solution offered by EMC’s RecoverPoint.

More about Carmel Ventures: With more than $600 million currently under management, several successful exits, and a growing portfolio of promising start-ups, Carmel is among Israel’s top-tier venture capital funds. Carmel’s investments are focused primarily on early stage companies in the fields of software, communications, Internet, digital media, semiconductors, and consumer electronics. Founded in 2000 by veterans of the Israeli high tech industry, Carmel says it provides significant capital and active, hands-on support through the growth cycle of its portfolio companies and is recognized as a true company building fund in Israel. Carmel, headquartered in Herzliya, Israel, is an affiliate of the Viola Partners Group, a leading innovative private equity investment group with close to $2 billion under management focused on technology-based investment opportunities in Israel.