Neoscale, storage security company shuts down after eating through $44M
NeoScale Systems, a Silicon valley provider of data storage security products that ate through $44 million in venture backing, has shuttered.
NCipher, a “management specialist” company, has acquired the Milpitas, Calif.’ company’s assets for $1.95 million. The assets include NeoScale’s CryptoStor tape encryption product and KeyVault key management technology, but did not include the company’s disk encryption technology.
VentureBeat first heard about the closure of NeoScale from a source three weeks ago, and had been trying to confirm details with investors. The company’s representatives weren’t returning phone calls. Lead investors, including Atul Kapadia of Bay Partners, Wes Raffel from ATV, declined to comment. Lightspeed Venture Partners and Seven Rosen, the company’s two other investors, did not respond to a request for comment. The company faced plenty of competition, including from Decru, now owned by Network Appliance.
The sale to nCipher was made by Hercules Technology Growth Capital, which owned the assets after having offering a loan the company with preferential terms.
Source: VentureBeat