Lefthand Gets Right Infusion

Boulder-based data storage firm receives $20M venture capital

By Janet Forgrieve, Rocky Mountain News
March 17, 2003

Investors on the "right" coast not only know what the Lefthand is doing - they like it.

Boulder-based Lefthand Networks will announce today that it has raised $20 million in additional venture capital, a round led by a New York-based firm and designed to take the company to profitability.

Lefthand makes and sells data storage systems designed to work on the Ethernet systems companies already have in place.

The $20 million was about twice as much as the company originally set out to attract, said David Bangs, vice president for sales and marketing.

Privately held Lefthand doesn't reveal its customer or revenue growth, but says it has been adding at least one new customer per week since launching a new software offering in October.

The company, which employs 50 people, will use the money to expand sales efforts throughout the United States and overseas, Bangs said. It will also invest in expanding its development efforts, he said.

In addition to the company's existing investor group, which includes Boulder-based Sequel Partners and Vista Ventures, this round brings in a new investor. The Sprout Group, the venture capital arm of Credit -Suisse First Boston, took the lead, Bangs said.

Sprout Group partner Wayne Nemeth also will join Lefthand's board of directors.

"Historically in this industry, there have only been very restricted choices that are expensive and massive," Nemeth said. "Now, there's the technology to provide a high level of storage at a much lower cost structure. Lefthand has really distinguished itself in this area."