VMware, a New York-listed provider of virtualization and cloud infrastructure, has agreed to acquire Virsto Software, a US-based provider of software that optimizes storage performance and utilization in virtual environments, to provide the first exit for venture capital firm Correlation Ventures.
In addition, database provider EMC plans to license the Virsto technology. In November, Frank Bien, formerly vice-president of strategic alliances for EMC’s big data division, joined Virsto as senior vice-president of strategy.
Virsto is backed by venture capital firms August Capital, Canaan Partners, InterWest Partners, Southern Cross Venture Partners and Correlation Ventures, which has as its limited partners more than 30 partners at other VC firms.
Virsto is Correlation’s first exit after raising $165m in January last year after building a database of venture capital financings to try and predict which deals to co-invest in – for its chart on exit multiples over the past decade click here.
David Coats, managing director of Correlation Ventures, by email said: “Yes, it was [the firm’s first exit]. Hopefully the first of many!”
Correlation made 26 deals last year.