Cloud storage company Nirvanix Inc. on Tuesday filed for chapter 11 protection, the culmination of a startling flop for what was once seen as a high-flier among cloud startups, the Wall Street Journal reported yesterday. The filing comes on the heels of a notice the company posted on its website last week saying that it was working with International Business Machines Corp. to either return customers’ data or help them move it to another cloud storage provider and would try to be available through October 15. Nirvanix had raised more than $70 million in venture capital since its founding in 2007, according to VentureWire records. In May 2012 after the last funding round, which was $25 million, former Chief Executive Scott Genereux told VentureWire that Nirvanix was growing and headed toward profitability and a possible IPO. Its largest equity holders are Khosla Ventures and TriplePoint Capital, which may provide debtor-in-possession financing to keep the company running, according to the bankruptcy filing. The company reported assets of between $10 million and $50 million and liabilities in that same range, according to the filing.
