Given the lofty valuations of Dropbox and Box, venture capitalists remain keen on the data storage industry.
Think Dropbox, Box, and a handful of other players have wrapped up the data storage space? Tell that to venture capitalists who certainly don’t seem to think so. Q2 2012 saw data storage hit a 10 quarter high in terms of deals marking a 119% increase in deal flow over the year ago quarter. On a sequential basis, deals and dollars were up 84% and 134%, respectively.
Since 2010, there have been 195 financing transactions in the storage space with over $1.6 billion having been invested. As the graph below illustrates, the deal activity trend is clearly trending upward.