Virtual Machines, Real Dollars

VMware's stock price might have tumbled, but that isn't stopping VC investment in the virtualization space. Two startups raked in millions this week.VKernel announced it had raised $4.6 million in a Series A investment from Hummer Winblad Venture Partners and Polaris Ventures. VKernel makes virtual appliances to manage capacity for virtual machines and chargeback to help track the resources used by business units. VKernel works on VMware's ESX platform.

You can check out our product review of VKernel's chargeback appliance here.

Earlier this week, Virtual Iron, which makes a Xen-based hypervisor, announced an additional $20 million in funding. The company has raised a total of $65 million from Highland Capital Partners, Matrix Partners, Goldman Sachs, Intel Capital and SAP Ventures.