Data storage company Seagate Technology Inc, which announced its return to profitability in its latest quarter (see separate story), says it has set up a venture capital fund, with initial funding of $25m. The Seagate Venture Fund is intended to provide seed capital and first-round financing for software, services, and hardware companies developing technologies in storage- intensive applications, with Seagate investing side-by-side with top-tier VC firms.
In the past, Seagate has made equity investments in Gadzoox Microsystems Inc, Dragon Systems Inc, San Disk Corp and CVC Inc. The new fund will pursue a non-controlling interest in companies not necessarily in the Seagate’s core business, but that will drive future demand for storage. Seagate says the initiative will aid its efforts by seeding the market with companies developing tomorrow’s killer applications.
