S2io, Inc., an emerging leader in high-speed server and storage I/O solutions, announced that it has closed a third round of funding totaling $15M. This brings the company's total funding to $42M. The round was led and priced by JAFCO Ventures, a venture capital firm that seeks to invest in emerging technology-based companies that feature breakout potential and compelling business models. JAFCO Ventures invests in U.S.-based companies out of its offices in Palo Alto and Boston. The round was oversubscribed with a substantial increase in valuation, reflecting the company's outstanding product, customer and revenue traction. "We can clearly see a significant market emerging for 10 Gigabit Ethernet solutions to improve data center performance," stated Joe Horowitz, Managing General Partner of JAFCO Ventures. "Given the quality of S2io's technology, products and team, we believe they have the necessary product roadmap and customer momentum to become the leading company in this sector." S2io's industry-standard technology enables enterprise data centers to gain exponential improvements in networked server and storage environments without having to modify existing cabling, operating systems or protocols. Last month S2io and Silicon Graphics, Inc. announced that SGI(R) would offer a new line of servers, storage appliances, workstations and visualization systems featuring S2io's "Powered by Xframe(R)" 10 Gigabit Ethernet adapter. S2io will be making further customer announcements in the coming months. "S2io is leading the movement to eliminate the I/O bottleneck in data centers by delivering unprecedented product performance and a product roadmap specifically based on end user requirements," said Dave Zabrowski, President and CEO of S2io. "Savvy investors such as JAFCO Ventures recognize that 10 Gigabit Ethernet applications are exploding and S2io has become the leader in a market that will change the fundamental I/O economics of compute/server and storage applications." Each of S2io's earlier investors -- Menlo Ventures, VenGrowth Capital Partners and BDC Venture Capital -- participated in the C round. This latest investment is expected to take S2io to profitability and the company does not anticipate seeking another round of funding.