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San Clemente Storage Startup Lands $10M, Moves HQ to Bay Area

Coraid Inc., a startup maker of data storage computers and electronics for corporate networks, said Monday it landed $10 million in venture funding and moved its headquarters from San Clemente to the Bay Area.

The company has coalesced around its investors in temporary offices in Redwood Shores, a company spokeswoman said.

Investors include San Francisco-based Azure Capital Partners and Palo Alto-based Allegis Capital.

Coraid maintains a small operation in San Clemente, where former chief executive Jim Kemp resides. He is heading the local office of about half a dozen workers as vice president of operations.

Coraid’s products focus on Ethernet-based storage that runs on the Linux operating system.

The company said it has some 1,000 customers, including large corporations, schools and the government.

The U.S. National Institutes of Health use Coraid’s EtherDrive product in its storage network to support the National Human Genome Research project in Rockville, Md.

Coraid, which started in 2004, also named several new executives in light of the funding, including a chief executive, chairman of the board and vice presidents of sales and business development.

In the same announcement, Coraid said it also added several new members to its board of directors and its advisory board.

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