DCIM developer Rackwise secures additional $5M in venture funding
Investment will provide additional working capital for continued product development.
Rackwise, Inc. (Folsom, CA), a developer of data center infrastructure management (DCIM) software and services, announced that the company has executed a term sheet providing, among other things, for net proceeds of $5,005,000 from 3 year, Series A, Convertible Secured Notes from Black Diamond Financial Group LLC, already a majority investor in Rackwise. The notes, subject to the execution of a definitive agreement, will be sold to Black Diamond in 6 installments commencing December 1, 2012, with the last installment on April 15, 2013.
Upon funding of the last note, Black Diamond will have a six month option to invest an additional $4,550,000 on the same terms and conditions, resulting in potential total net proceeds of $9,555,000.
“We are very fortunate to have a collective group of stakeholders who are committed to help Rackwise secure its technology leadership position in the DCIM industry now and in the future," comments Guy A. Archbold, CEO of Rackwise. "This investment will provide additional working capital for continued product development and expansion to meet the evolving needs of this rapid-growth industry, including new advancements in our product and product architecture resulting in more flexible deployment models and even more rapid ROI for customers."
Black Diamond says its commitment to an additional investment in Rackwise further demonstrates the value of the evolving DCIM industry opportunity and their confidence that the company is well positioned with both product and customer base to grow its leadership and market share in the near and long term.
Rackwise CEO Archbold concludes, "We believe these advancements will accelerate our leadership position in the industry. This funding commitment, together with an anticipated simultaneous equity funding, ensures that Rackwise is well financed to meet the needs of our most valued customers, potential customers, and stakeholders going forward.”
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