e-Security Receives $5 Million In Funding
New Funding Will Enhance Growth in Developing Markets
Tuesday, May 25, 2004
Vienna, VA - e-Security, Inc., the leader in security management software, today announced the company has secured $5 million in a third round of funding from current investors. e-Security will use the funds to make increased investments in technology development and pursue new market opportunities in security management.
All of e-Security's current investors participated in this round, including Fidelity Ventures, FTVentures, Advanced Technology Ventures, Updata Partners and Knickerbocker. "Having all of our current investors participate in this round of funding is a strong demonstration that they not only believe in the health of the market, but that they also recognize e-Security as the market leader," stated Joe Payne, president and CEO of e-Security.
"The security management market is growing rapidly and we are confident that e-Security has the infrastructure and scalability to meet the demand for multi-vendor, enterprise security monitoring and response," said Rob Ketterson, managing partner of Fidelity Ventures. "e- Security continues to be a leader in the security management industry, as evidenced by its placement in the Leadership Quadrant of the Gartner Magic Quadrant. With this investment, we see a solid opportunity to help the company advance its leadership position."
e-Security's software significantly increases an enterprises effectiveness in managing the identification, validation and resolution of critical security incidents while supporting key policy and compliance efforts.
"Part of the growth in security management is being driven by new requirements being placed on security teams, with IT compliance for regulations such as Sarbanes-Oxley, Gramm-Leach- Bliley Act and Federal Information Security Management Act being a key driver," Payne said. "Thwarting or identifying a cyber attack is only the first step. Managing the life-cycle of an incident and proving the existence of effective remediation processes are at the heart of Federal regulations. With this round of financing, we can continue to add functionality that will help our customers more easily identify, validate, resolve, and report on security, policy and compliance related incidents."
The security event management market has gained momentum as regulatory concerns more closely align with business goals, according to a November 2003 Yankee Group report ("Security Event Management Systems Defend Against Information and Regulatory Overload"). The report predicts accelerated growth in the security event management market from mid- to late 2004 into 2005, swelling to $430 million in 2008.
e-Security, Inc. is the leading global provider of software for Security Management. The company works with large enterprises, government organizations, and managed security service providers (MSSPs) to help them increase the effectiveness and efficiency of their security operations and improve compliance with security policies. e-Security pioneered the Security Management market in 1999 and has the largest installed base of enterprise-class Security Management customers.
About Fidelity Ventures
Founded in 1969, Fidelity Ventures invests private equity in entrepreneurial companies preparing to "go-to-market" in the information technology and communications sectors. By combining a collaborative partnership with a global network, Fidelity Ventures enables its portfolio companies to accelerate their market entrance and become leaders in their respective fields. Over the last three decades, the firm has contributed to the success of such industry leaders as GeoTel Communications (IPO subsequently acquired by Cisco), Teleport (IPO subsequently acquired by AT&T) and COLT Telecom (NASDAQ: COLTY). Recent investments include ONI Systems (IPO subsequently acquired by Ciena), WaveSmith (acquired by Ciena), and Newisys (acquired by Sanmina). Fidelity Ventures currently manages more than $500 million in venture capital, and invests in U.S.-based companies out of its Boston office, and in European companies out of its London office. For more information, visit www.fidelityventures.com.
Founded in 1998, FTVentures was the first private equity firm in the U.S. to focus on technologies that benefit the global financial services industry. FTVentures now has over $623 million in total capital under management and is a leading provider of venture and late stage growth capital to software and business services companies. FTVentures leverages its unmatched global financial services partner network to deliver superior returns. FTVentures' Limited Partners include AIG, Bank of America, BNP Paribas, Charles Schwab, Citigroup, Credit Suisse Group, Deutsche Bank, DBS Bank, GE Capital, HSBC Holdings, Key Principal Partners, National City, Skandinaviska Enskilda Banken (SEB), Standard Chartered Bank, US Bancorp and Wells Fargo. For additional information, visit www.ftventures.com.
About Updata Partners
Updata Venture professionals have a highly successful history in industry operational roles and as investors in early stage technology companies. Updata Ventures seeks to achieve superior returns by leveraging the extensive network of its partners, Updata Capital and other strategic relationships, benefiting from the operating experience of its management team, and by investing across all stages of the investment life cycle, with a principal focus on early stage companies. Updata Venture Partners' primary objective and mission is to provide entrepreneurs the tools and management experience of the partners in building their companies into leadership positions within their respective fields. The firm has a primary emphasis on opportunities emanating from the convergence of information technology and telecommunications. For additional information visit www.updataventures.com and www.updata.com.
About Advanced Technology Ventures
Founded in 1979, Advanced Technology Ventures (ATV) is a bi-coastal venture capital firm with more than $1.5 billion in capital under management. We work closely with entrepreneurial teams in several technology markets, including communications, IT infrastructure, software and services, and healthcare technologies, to build emerging-growth business ventures into market leaders. With more than 20 years of experience, ATV has a proven track record of success in helping to build strong, sustainable business enterprises. More information can be found at: www.atvcapital.com.
Knickerbocker LLC is a private investment management firm that oversees and administers the assets of various trusts, foundations, and individuals. Knickerbocker LLC's diversified portfolio includes investments in large and small cap equities, international equities, fixed income, hedge funds, limited partnerships, real estate, and venture capital. Knickerbocker LLC's venture capital portfolio focuses on mid-to-late stage investments in the areas of financial services, biometrics, information security, optical networking, telecom, software, and multimedia. Knickerbocker LLC seeks to invest in companies that have the leadership, drive, and ability to revolutionize markets and execute an intuitive and well-defined business plan. Knickerbocker LLC's management professionals maintain strong relationships with leading figures in public equity markets, private equity, venture capital, and real estate. For additional information about Knickerbocker LLC visit www.knickerbockerllc.com.
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