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Storage - Monday, April 2, 2007

Data Domain Files $100M IPO

Santa Clara storage appliance maker Data Domain has filed for a $100M IPO co-led by Goldman Sachs and Morgan Stanley. The company says it did $46M in revenues last year with a net loss of $4M.

Data Domain was among an early group of startups promising a better way of doing backups than tape. Now Data Domain is competing with EMC [NYSE: EMC] Clarion Disk Library, and Network Appliance [Nasdaq: NTAP]. Data Domain’s chief differentiator is its compression algorithm. When backup software writes data to a Data Domain device, the device detects data that has already been saved, and inserts a pointer to the original block instead of saving it again. Data Domain says this makes backup more efficient and saves money.

Data Domain has raised around $41M in VC funding. Former FCC Chairman and Intel board member Reed Hunt Joined the board a few weeks ago.

VC Pre-IPO stake
Greylock Partners 30.3%
New Enterprise Associates 28.9%
Sutter Hill Ventures 16.8%