May 9, 2012

Cover Story

CEO of the Year

Utah’s business landscape is rich with professionals who have le...Read More

Featured Articles

Did you go Skiing this winter?

Around Utah

Sections

Spotlight
Martin Plaehn

Spotlight
Karen Sendelback

Legal Briefs
Social Media and Employers: Friends or Enemies?

Money Talk
The Case for HSAs

Economic Insight
Time to Show Up

Lessons Learned
Make a Move

TechKnowledge
In the Lab

EntrepreneurEdge
Rent to Own

Business Trends
Back from the Dead

Executive Living
Artful Inspiration

Features
A Breath of Fresh Air

Features
Worst-Case Scenario

Regional Report
Northern Utah

Focus
Measure Up

Industry Outlook
Travel & Tourism

Players
Players

Article

Fusion-io CEO David Flynn Describes Early Hurdles

Heather Stewart

May 9, 2012

Local tech titan Fusion-io completed its $250 million initial public offering in June 2011, and the company saw $252.7 million in revenue for the first three quarters of 2012. But when Fusion-io was founded in 2006, it was snubbed by local venture capital firms, said CEO David Flynn.

Flynn spoke at a Holladay Chamber of Commerce meeting on Tuesday, detailing the company’s history and revolutionary technology.

Before creating Fusion-io, company founders had embarked on a previous venture—which collapsed when the lead investor pulled out due to its own financial difficulties. Because of that failure, local VC firms turned up their noses at Fusion-io, said Flynn.

Fortunately, Silicon Valley VC firms are more accustomed to the bumpy ups and downs of the start-up world, said Flynn, and Fusion-io found itself courted by the Sequoia Fund and Dell Computers. It eventually raised its first round of funding in 2008 from a group of investors that included New Enterprise Associates (NEA) and Michael Dell.

According to Flynn, Fusion-io’s IPO represented NEA’s second-highest return on investment ever. And prior to the IPO, NEA bought out the company’s angel investors at five times their original investment.

Fusion-io is continuing to take the memory storage industry by storm. The company has grown from its original six employees to nearly 600, and it has formed OEM partnerships with powerhouses like HP, IBM and Dell.

“If you use Facebook, then you’ve used our products,” Flynn told the Holladay Chamber members. “We are at the heart of what powers Facebook and their ability to have over 1 billion users.” Apple is another notable client, with Fusion-io enabling iCloud and the Siri voice-recognition interface.

Fusion-io developed a NAND flash memory platform that significantly increases data center efficiency. Traditional data centers, based around disc drives to store information, are costly and inefficient, said Flynn. They use a great deal of energy, both in powering the servers and keeping them cool.

“Computing today is literally left back in the Stone Age because it’s based on mechanical systems,” he said.

The impact of NAND flash memory will be similar to the way microprocessors transformed computing from the old mainframe systems to PCs, he added. “We’re tapping into a very big pain point in the market.”

(5.9.12)

Utah Business Social
UB Events View All
30 Women to Watch 2014!Utah Business Event
May 22, 2014
Thirty of Utah’s most dynamic women will be recognized at the 15th Annual 30 Women to Watch Awar...
Rocky Mountain Leadership ConferenceUtah Business Event
Jun 19, 2014
Utah Business and Hero Partners are thrilled to announce the Rocky Mountain Leadership Conference...
Community Events View All
Responsive Web Design
Apr 23, 2014
Discover the latest techniques to make your website more readable and functional across various s...
Verizon Wireless Hiring Event
Apr 23, 2014
Verizon Wireless is hosting a recruiting event at the Radisson Hotel in downtown SLC (215 W South...

info@utahbusiness.com  |  90 South 400 West, Ste 650 Salt Lake City, Utah 84101   |  (801) 568-0114

Advertise with Utah Business

Submit an Event

* indicates required information
* Event Name:
Price (general):
Website (if applicable):
Coordinator's Name:
Coordinator's Email:
Coordinator's Phone:
Venue Name:
Venue Address:
Venue City:
Venue Zip:
Event Capacity:
Date(s):
to
* Event Description:
  Cancel