StorMagic secures Palatine funding to drive expansion & innovation

StorMagic has received funding from the Palatine Growth Credit Fund to support its expansion. This investment aims to propel the Bristol-based edge computing company's growth, following the recent launch of its new product, SvHCI. The full-stack software solution is designed to offer cost-effective alternatives to VMware and Microsoft products, potentially saving customers significant amounts in expenses.

Palatine stated that StorMagic is poised to benefit from the changing market dynamics resulting from Broadcom's acquisition of VMware. The Palatine Growth Credit Fund, which is focused on supporting high-growth companies in the UK, chose to back StorMagic in part due to its innovative approach and established customer base. StorMagic's solutions are used by thousands of clients globally, ranging from small and medium-sized businesses to large enterprises.

Dan Beer, Chief Executive Officer at StorMagic, commented on the investment: "StorMagic is thrilled to have Palatine's support as the company recently entered a new market segment with the introduction of SvHCI. Since Broadcom's acquisition of VMware, edge and SMB customers have seen massive price increases and many are looking for alternative solutions to help them run on-site applications reliably while reducing costs. SvHCI is the ideal replacement solution and can save SMBs and edge customers up to 62% over VMware alternatives."

Established in 2006, StorMagic has been a notable player in the hyper-converged storage market, particularly with its product SvSAN, which caters to organisations using VMware or Microsoft virtual server environments. The company maintains offices in the USA and Canada, extending its reach and support across various regions.

The Palatine Growth Credit Fund is designed to support maturing, high-growth firms in the UK, particularly those within the technology ecosystems of the North, Midlands, South West, and South East regions. The fund targets sectors such as cyber, fintech, SaaS, health tech, medtech, AI, and advanced manufacturing.

The CEO of StorMagic, Dan Beer, further elaborated on the strategic significance of the Palatine investment. He expressed confidence that the backing would not only sustain but also accelerate the company's current momentum. "With Palatine's support, we can continue to innovate and provide robust solutions tailored to the evolving needs of our customers," Beer stated.

StorMagic's recent entry into new market segments with products like SvHCI reflects its commitment to offering practical and cost-efficient alternatives at a time when many organisations are seeking to cut costs without compromising on reliability and performance. The ongoing changes post-Broadcom's acquisition of VMware have opened opportunities that StorMagic is well-positioned to exploit.

The funding from the Palatine Growth Credit Fund marks the fund's first transaction and highlights its strategy of lending to businesses exhibiting year-on-year solid revenue growth. The fund aims to support companies that are navigating through their growth phases while maintaining sustainability and innovation at the core of their business plans.