Expansion at Bristol enterprise software developer StorMagic is to be accelerated after receiving a “significant investment” from a specialist private equity growth fund.
StorMagic, which has taken thousands of clients around the world since launching in 2006, recently introduced a new full-stack software solution that can save customers significant costs over rivals VMware and Microsoft. 
Called SvHCI, it builds on the success of its SvSAN virtual storage software package, which has put the firm at the forefront of edge computing – the framework that enables organisations to better handle huge amounts of data in real time.
Both products operate on VMware or Microsoft virtual server environments.
The investment – financial details of which have not been disclosed – came from Palatine, the Manchester-based private equity firm focussed on backing entrepreneurial businesses in the regions. 
It is the first transaction from Palatine’s specialist Growth Credit Fund, which it launched last year to support maturing, high-growth companies in the regions that are achieving strong year-on-year revenue growth.
Palatine said it believed StorMagic, which also has offices in the US and Canada, was well-placed to capitalise on the new market conditions presented by Broadcom’s $69bn acquisition of VMware last November.
Founded in 2006, StorMagic has been selling SvSAN, hyperconverged storage, for
StorMagic chief executive officer Dan Beer, pictured, said: “StorMagic is thrilled to have Palatine’s support as the company recently entered a new market segment with the introduction of SvHCI.
“Since Broadcom’s acquisition of VMware, edge and SMB customers have seen massive price increases and many are looking for alternative solutions to help them run on-site applications reliably while reducing costs.
“SvHCI is the ideal replacement solution and can save SMBs and edge customers up to 62% over VMware alternatives.”
Palatine’s specialist Growth Credit Fund lends to companies in the cyber, fintech, SaaS, healthtech, meditech, AI and advanced manufacturing sectors in the burgeoning technology ecosystems of the South West, South East, North and Midlands.
