Midokura Nets Hefty Payoff in Series B Funding Round
Midokura's recently concluded Series B funding round ended quite well for the company, bringing in fully $20.4 million. A company already known for its software network virtualization systems, the company landed this win on the back of its network virtualization technology known to the market as Midokura Enterprise MidoNet. MidoNet offers some terrific options for its users, and that was enough to bring in investor interest.
With just over $44 million in investment placed with Midokura so far, the Series B round saw former investors like Innovation Network Corporation of Japan (INCJ) and Midokura board of directors member Allen Miner chip in, along with Japanese fintech organization Simplex Inc. Product development will be a top priority for the new funding, as well be an expansion to both development and executive ranks, as the company pushes for greater partnerships with the industry.
As more companies—including several current Midokura partners and customers like Blue Jeans Network, Dell and Fujitsu—turn to systems like OpenStack and container orchestration, demand is accordingly on the rise for network virtualization and software-defined networking (SDN) solutions. With IDC reports suggesting the global market for SDN will reach almost $12.5 billion, achieving a compound annual growth rate (CAGR) of 53.9 percent between 2014 and 2020, it's clear that this is a market that will need not only more SDN solutions, but also more complements to make SDN solutions better, and that's where Midokura comes in.
Midokura, at last report, is proving to be the network overlay companies want on hand, as well as a major figure in container orchestration, a development that should make it attractive to companies wanting to make the most of SDN. Its co-founder and chairman, Tatsuya Kato, commented “The network is the enabler of a connected lifestyle, including connected cars and connected devices. With the wholesale re-imagination of global industries, from commerce to financial, travel and transportation, software gives rise to a new class of applications that demands higher levels of network agility and performance.“
Kato has the right of it here; with so many of our current advancements dependent on the network—everything from smart homes to streaming video to connected cars and an array of workplace tools—having a reliable, stable network to operate from is job one. Without such a network every other ambition is little more than pie-in-the-sky wish-making. So Midokura's network support becomes highly important, allowing more to be done with the same resources and letting the network stretch farther as a result.
While the state of the network in the United States and beyond in many cases may not be all that great—at least until gigabit fiber without bandwidth caps is as universal as electric power—companies like Midokura will have a clear market niche taking what's already been put in place and making it more efficient and better overall.
Edited by Stefania Viscusi