VCs take a cold bath on Drobo deal

Chris Mellor

Total known Data Robotics/Drobo funding is $53 million, then. Connected Data had raised $6 million up to the merger with Drobo so its purchasing power would have been minimal. The firm probably raised new funding to take on Drobo but, surely, we're looking at a purchase price of as low as $5 million or even less; pretty much a fire sale. It looks like Drobo's preferred investors, the funding VCs, have made a thumping loss while common stock holders will have received nothing.

A source close to Drobo had this to say:

Investors forced Drobo to liquidate or sell, if anyone would have them. Turns out Connected Data negotiated with investors to buy Drobo at a fraction of its outstanding shares.

I didn't realize that Barrell had left Drobo to start Connected Data. It's an interesting story indeed. More info on the merger can be found here. I'll be watching Drobo/Connected Data in the future. Transporter looks like a very interesting product.

Link via @devinakin