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CNEX Labs Raises $23M in Round led by Dell Technologies Capital to Transform Data Center Storage

Series D strategic investors include venture units of Dell Technologies, Microsoft and others

SAN JOSE, Calif., October 10, 2018-- CNEX Labs Inc., developer of a transformative architecture for solid state drive (SSD) controllers, today announced it has raised over $23 million in Series D venture capital from an investor group led by early investor Dell Technologies Capital (which led CNEX’s Series A round).

CNEX’s technology enables a new business model for the SSD market supplying enterprise storage and servers, hyperscale data centers and cloud computing platforms. CNEX’s patented, ground-up redesign of traditional SSD controller architecture plus its turn-key SSD design capability allow these customers to procure SSDs customized for their own needs, while reducing their exposure to the cyclical swings in SSD supply that have constrained business growth.

CNEX’s SSD controller technology includes a highly-programmable interface to NAND flash memory, allowing the same controller to work with multiple types of NAND; flexible Flash Translation Layer (FTL) control (either drive- or host-based), allowing easier optimization for different types of workloads; and proprietary hardware acceleration supporting key functions typically run on slower firmware.

These technologies enable high-volume SSD users to customize their drives to deliver higher throughput, lower power consumption and significantly better QoS (quality of service, measured as low and predictable latency), while achieving improved cost control.

“As one of the first investors in the 2014 Series A, we saw the potential for CNEX’s technology early on,” said Gregg Adkin, Managing Director, Dell Technologies Capital. “In an era of explosive data growth, CNEX’s technology allows hyperscalers and enterprise storage and server providers to use SSDs as a strategic differentiator, purpose-building hardware to suit their needs, while achieving significant cost savings.”

Strategic investors also include M12, Microsoft’s venture fund (which led CNEX’s Series C round), major semiconductor foundries, large storage and networking semiconductor companies and other new and existing strategic investors. Additional investors in this round include Sierra Ventures, Walden Venture Investments, Brightstone Venture Capital and others.

“As enterprise storage and server vendors, hyperscalers and cloud service providers rapidly embrace SSDs to meet the explosive demand for high performance storage, they want the ability to tailor SSDs for their needs and to gain greater control of their supply chains,” said Mark Geenen, founder and CEO of TrendFocus. “CNEX Labs is positioned to help them do that through its technology and its disruptive and differentiated approaches to SSD development and procurement. This investment from Dell Technologies Capital, Microsoft Ventures and other industry leaders is a major validation of their approach.”

“CNEX’s breakthroughs will advance innovation in flash storage design, allowing hyperscale users to build SSD-based storage optimized for the very different needs of high-volume, multi-tenant cloud platforms,” said Rashmi Gopinath, Partner, M12. “CNEX’s design enables improvements in performance, QoS and power efficiency.”

“CNEX Labs technology relieves customers from the mercy of a commoditized market and puts them back in control of their own destinies,” said CNEX Labs CEO and Co-Founder Alan Armstrong. “We are proud to have achieved such strong backing and validation from industry partners and investors.”

About CNEX Labs Inc.

CNEX is a privately held company founded in 2013 and funded by venture capital and strategic investments from Fortune 500 companies in storage and networking. CNEX delivers innovative storage semiconductor and software solutions, partnering with solid-state storage manufacturers, data center and systems customers to develop revolutionary NVMe and Open-Channel SSD controller ASICs that deliver high-performance with low and predictable latency, scalability and flexibility for software-defined-storage. CNEX controller products are key to accelerating the capabilities of big data computing and analytics for the next generation of cloud, hyperscale and enterprise data centers. For more information, please visit www.cnexlabs.com.

All statements included or incorporated by reference herein, other than statements or characterizations of historical fact, are forward-looking statements related to trends in the market for our solutions and services, opportunities for our company in 2018 and beyond, and future product capabilities. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management’s beliefs and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “projects,” “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” and similar expressions and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include the continued expansion of our product line, customer base and the total available market of our products, the continued growth in demand for our products, the continued, increased demand for industry standards-based technology, our ability to react to trends and challenges in our business and the markets in which we operate, our ability to anticipate market needs or develop new or enhanced products to meet those needs, the adoption rate of our products, our ability to establish and maintain successful relationships with our OEM partners, our ability to effectively compete in our industry, fluctuations in demand, sales cycles and prices for our products and services, our success converting design wins to revenue-generating product shipments, the continued launch and volume ramp of large customer sales opportunities, and our ability to protect our intellectual property rights. In addition, current uncertainty in the global economic environment poses a risk to the overall economy as businesses may defer purchases in response to tighter credit conditions, changing overall demand for our products, and negative financial news. Consequently, our results could differ materially from our anticipated results due to these general economic and market conditions, political events and other risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Contact:
Summit Strategy Group
Paul Sherer, 415-385-5970
paul@summitstrategygroup.net


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