Primary Data : Startup that raised lot of funding and buzz shuts down


Primary Data, the storage startup offering a metadata-driven abstraction layer, seems to be shutting down.

Primary Data was a four-year-old data virtualization startup based in Los Gatos, California. It had raised a whopping $100 million in equity and debt and attracting the likes of Apple co-founder Steve Wozniak to its management team. The company had brought aboard Lance Smith its new CEO in 2014.

The company hasn’t made an announcement yet. According to TechCrunch

Neither the company nor the numerous investors to whom we reached out over the weekend have responded to our requests for comment. But according to a trusted source close to the company, Primary Data’s problem from the outset was that its technology was never quite as compelling as it needed to be, given that it was trying to sell mission-critical software. (If it’s not up to snuff, data virtualization software can create challenges with manageability, usability, data quality and performance.)

Glassdoor posting also claims the  “Company is shutting down” :

A blog in The Register confirms that Primary Data is defunct:

An anonymous source also told us: “Primary Data collapsed and got shut down over the weekend. All employees got laid off. Management wanted to buy off all investors and convert preferred shares to common. Investors said no. $100m of investor money is all burnt up and gone, with nothing to show.”

A second source said on Saturday that friends at the company had been told the game was up, and emergency funding was being sought.

A third confidential informant in the industry also said over the weekend something was certainly going on, and that Primary Data people had said they were not permitted to talk about it.

 

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