Vernier received $21M in an oversubscribed Series E financing round and $5M in debt financing from Silicon Valley Bank and Gold Hill Capital

October 19, 2005

2 Min Read

MOUNTAIN VIEW, Calif. -- Vernier Networks® today announced that it received $21 million in an oversubscribed Series E financing round. Led by top-tier venture capital firm Venrock Associates, the round included existing investors Foundation Capital, DCM-Doll Capital Management, Allegis Capital, UV Partners, Masthead Ventures and Weber Capital. Named a 2005 Technology Fast 50 Company by Deloitte & Touche, the company also added security industry heavyweight Ray Rothrock to the company's board of directors.

With an additional $5 million raised in debt financing from Silicon Valley Bank and Gold Hill Capital, the $26 million cash infusion will be used for strengthening Vernier distribution channels, enhancing Vernier's award-winning EdgeWall platform, as well as expanding Vernier Threat Labs. The strong response for the award-winning EdgeWall network access management appliance will drive Vernier to ramp production in order to meet customer demand and penetrate new markets.

"The demand for our network access management solution is exploding and represents all industries including financial services, oil and energy, manufacturing, education and healthcare," said Simon Khalaf, chief executive officer at Vernier Networks. "In Q3, our flagship EdgeWall product line nearly tripled in revenue as compared to Q2. Based on this phenomenal growth, Vernier is driving the network access management sector and poised to be the clear leader in this high-growth market."

According to leading IT market research and advisory firm IDC, security appliances with strong firewalling capabilities did well in 2004. Total vendor revenue exceeded $2.5 billion for the overall threat management market, representing a 36 percent growth rate when compared with 2003. (Source, IDC, Worldwide Threat Management Security Appliances 2005-2009 Forecast and 2004 Vendor Shares: Security Appliances Remain a Well-Oiled Machine, #33997, September 2005). Analysts expect that growth to continue due to several high-profile security breaches in the last year where poor internal and endpoint security controls exacerbated the problem.

"The explosive growth of remote access to corporate networks by employees, customers, and partners is proving to be a significant challenge for IT infrastructure protection," said Charles Kolodgy, research director, IDC. "By enforcing corporate access policy on every device that connects to the network regardless of location, and without putting a client on the desktop, Vernier is offering an innovative way to block attacks and secure the network from within."

Vernier Networks Inc.

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