As companies get serious about security and invest more in protecting their networks, wouldn’t it make sense to protect that data where it lives and rests — in datacenters? RackTop Systems, a Maryland-based company that is betting on this idea with its datacenter solutions, today announced it has raised $15 million in series A funding.
The funding round for the nine-year-old firm was led by Razor’s Edge Ventures and Grotech Ventures, with participation from Maryland Venture Fund, Blu Ventures, and Gula Tech Adventures. Eric Bednash, cofounder and CEO of RackTop Systems, told VentureBeat in an email that the company had raised about $1.5 million prior to today’s round.
RackTop, which competes with the likes of NetApp and Dell’s Isilon, sells BrickStor, a network-attached storage (NAS) with layers of security and compliance features that run on top. The company said it will use the fresh capital to expand its product offering and ramp up sales operations.
RackTop claims it has customers in a variety of industries, including public sector, media, advertising and entertainment, and financial services — but it did not disclose any names, citing confidentiality agreements. RackTop did say that it manages more than 50 petabytes (50 million gigabytes) of data.
The rise in security breaches in recent years has prompted many companies to invest heavily in expanding their compliance requirements and put an additional layer of protection around their network. But meeting these efforts is “costly and complex” for enterprises, Bednash said.
“Our product fuses data storage with cybersecurity to create a unique platform that solves these challenges inherently without added complexity or cost, beyond that of legacy storage products alone,” he said in a prepared statement.
Last year, RackTop partnered with Seagate to launch a product aimed at government organizations. Bednash said the partnership has been successful and continues to grow. “It led to multiple sales and partnerships with other large systems integrators to address compliance and cyber threats within the defense industrial base,” he told VentureBeat.
The NAS market is growing rapidly, and one estimate suggests it could be worth north of $45 million by 2023.