Israeli VC funds invest in U.S. data storage startup Silverback Systems

Pitango and Gemini team with JP Morgan, Newbury in $15m investment
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California-based Silverback Systems, which makes silicon and software solutions for networked storage and data centers, secured $15 million in its second round of venture capital financing from Israeli and U.S.-based funds.

The investment in Silverback was co-led by JP Morgan Partners, U.S.-based Newbury Ventures and the Israeli funds Pitango Venture Capital and Gemini Israel Funds, together with a strategic investor.

Silverback chief executive Danny Biran said that the proceeds will be used to complete development of the company's first product and to introduce it to the market.

Silverback is working on a new category of network processor architecture for Internet protocol-based storage networks and data centers. Its Ethernet-based storage-over-Internet products help enterprises manage information efficiently and at low cost by creating designated data storage networks.

Its products target servers, host bus adapters, storage arrays, virtualization boxes and storage switches and routers, the company explains. In August 2000 Silverback raised $2.3 million from The Capital Group and private investors.

Silverback Systems is based in Mountain View, California and maintains an engineering center in Rochester, Minnesota. Founded in August 2000 by Oran Uzrad-Nali, a member of the founding team of MMC Networks, the company has 25 employees.

CEO Danny Biran formerly served as vice-president at LSI Logic after 15 years at National Semiconductor.