Virsto Software is a technology company.
Virsto Software has raised $24.0M across 3 funding rounds.
Virsto Software has raised $24.0M in total across 3 funding rounds.
Virsto Software has raised $24.0M in total across 3 funding rounds.
Virsto Software's investors include August Capital, Canaan Partners, InterWest, Moment Ventures.
Virsto Software was a technology company that developed a VM-centric storage hypervisor to optimize storage for virtual machines in virtualized environments.[1][2][3] Its products, such as Virsto VSI and Virsto VDI, improved storage utilization, boosted performance, and reduced costs and complexity for use cases including VDI, test and development, Tier I applications, and cloud computing.[1][2] The company served enterprises adopting virtualization, particularly those using VMware or Microsoft Hyper-V, solving inefficiencies in storage management that hindered VM scalability.[1][3] Founded in 2007 and headquartered in Sunnyvale, California, Virsto raised $24 million across Series A and B rounds before being acquired by VMware in February 2013, marking strong growth momentum in the storage virtualization space.[1][2]
Virsto Software was founded in 2007 by Mark Davis (CEO), Alex Miroshnichenko (CTO), and Serge Pashenkov (VP of Engineering), all with deep expertise in storage and virtualization technologies.[2][3] Davis, who had managed several startups acquired by Dell and HP, aimed to replicate VMware's server virtualization success in storage, building Virsto as his first ground-up venture.[3] The idea emerged from recognizing storage bottlenecks in virtualized datacenters, prompting a key early decision: launch quickly with Microsoft Hyper-V despite its uncertainty, rather than wait for VMware integration.[3] This gamble enabled rapid market entry in 2009, followed by a $7 million Series A and $17 million Series B in 2011 from investors like August Capital and Canaan Partners; traction exploded once VMware opened its ecosystem, leading to the 2013 acquisition.[1][2][3]
Virsto's standout features positioned it as a leader in storage virtualization:
These elements made Virsto a "missing link" for vSphere environments, per industry analysis.[2]
Virsto rode the virtualization and software-defined storage wave in the early 2010s, as enterprises shifted from hardware-centric to hyper-converged infrastructures amid cloud computing's rise.[1][3] Its timing was ideal: VMware's dominance created demand for complementary storage solutions, especially after VMware refocused on infrastructure post-Nicira acquisition, while Microsoft Hyper-V gained ground.[1][3] Market forces like exploding VM densities and storage inefficiencies favored Virsto, influencing the ecosystem by accelerating VMware's storage capabilities and validating storage hypervisors as essential for datacenter efficiency.[1][3] The acquisition integrated Virsto's tech into VMware's stack, boosting broader adoption of virtualized storage and paving the way for modern HCI players.
Post-2013 acquisition, Virsto's technology was absorbed into VMware, enhancing its vSphere and vSAN offerings, though the standalone company ceased independent operations.[1] Looking ahead, its legacy endures in VMware's (now Broadcom's) portfolio, shaping trends like hyper-converged infrastructure amid AI-driven datacenter demands. As edge computing and hybrid clouds evolve, Virsto's VM-optimized storage principles will influence next-gen solutions, underscoring how nimble innovators like it fuel giants' dominance in virtualization.[1][3] This story highlights the high-stakes bets that defined storage software's transformation.
Virsto Software has raised $24.0M across 3 funding rounds. Most recently, it raised $5.0M Series B in August 2011.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Aug 1, 2011 | $5.0M Series B | August Capital, Canaan Partners, InterWest, Moment Ventures | |
| Jun 1, 2011 | $12.0M Series B | August Capital, Canaan Partners, InterWest, Moment Ventures | |
| Jun 1, 2009 | $7.0M Series A | August Capital, Canaan Partners, Moment Ventures |