Copan Systems won its race against the clock, adding $18.5 million in funding to prove talk of its impending demise was exaggerated.
Copan late last year laid off 15% of its staff, gave its CEO and senior management pay cuts and sent about half the remaining staff on unpaid leave around the holidays while scrambling to close another funding round.
With funding hard to come by in these economic times, there was a lot of talk that Copan might not survive. But CEO Mark Ward said Copan’s 40% revenue growth last year attracted new venture capitalist Westbury Partners to lead the round with existing investors Austin Ventures, Globespan Capital Partners, Firstmark Capital and Credit Suisse kicking in more.
“It’s been a wild scenario over the last six months,” Ward said. “This should keep the EMCs of the world from telling everybody we’re going out of business.”
Ward says the funding will be used to add to Copan’s platform of MAID spin-down arrays. He says Copan will have two major product launches this year: a new file system for moving data from NAS to its archive, and a new systems architecture upgrade to 8 Gpbs Fibre Channel and 2 TB drives with improved data indexing and cataloguing capabilities.
Copan won’t be spending its newly acquired funding on hiring back any laid off employees. Ward said the company will probably remain at or near its current head count of 110 in hopes of hitting profitability this year. When it cut staff, Copan added international channel partners to augment sales and service.