Valley Start-Up Agami Systems Raises $45 Million, Disappears

Agami Systems was a network storage company in Sunnyvale that seemed to be doing well. In February, it announced a $45 million C Round with participation from Kleiner Perkins. But a few weeks ago, employees were summoned for an urgent 11 am meeting:

Chief executive David Stiles announced that Agami was shutting down, effective at 1 p.m. that day. The news blindsided scores of engineers and office workers — and even some top managers.

So what happened? Founder Kumar Sreekanti, a former Akamai Technologies (AKAM) exec, told the Mercury News that they were trying to raise capital and they couldn’t get it done in time, so they shut down the company and are liquidating the assets.

Of course, that makes no sense. Even Agami’s would-be competitors are bewildered. As Dan Warmenhoven, CEO of NetApp – a company Agami was trying to challenge, notes, “You don’t raise $45 million and then get shut down.”

The real losers here are the 80-100 employees of Agami in Sunnyvale and Hyderbad, India. Some employees have tried to send e-mails to an address that the company provided them to request pay, but one employee told the Mercury News that they “haven’t received one response, not one.”

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