Virtela Emerges From Stealth

Norwest Venture Partners invests $25 million in Virtela Communications; startup announces suite of VPN solutions

October 17, 2001

3 Min Read

PALO ALTO, Calif. -- Norwest Venture Partners (NVP), the premier venture capital business partner for emerging growth IT companies, today announced a total investment of $25 million to date in Virtela Communications Inc., a global managed virtual private network (VPN) services and solutions provider which officially launched its company and solutions suite today. After sponsoring an initial $15 million in the Series A round at the time of Virtela's inception in April 2000, NVP leads Virtela's second round with a $10 million investment.Virtela closes its $35 million Series B equity round, bringing the total amount of financing raised to $75 million. This round also attracted capital from seven new investors: New Enterprise Associates, Palomar Ventures, RSA Ventures (a venture capital fund sponsored and managed by RSA Security Inc.), Symantec Corp., Juniper Networks, Newton Technology Partners and North Coast Technology Investors. The new funds will be used to expand the company's sales and marketing forces throughout the world to accelerate enterprise adoption of its advanced network-enabled VPN solutions."Virtela's cost-effective approach to building and delivering advanced private networking services is critical for enterprises needing to connect corporate offices with remote employees utilizing pervasive applications such as email, CRM and ERP," stated Promod Haque, managing partner of Norwest Venture Partners. "With superior technology and an experienced executive team comprised of recognized experts and industry veterans from Qwest, Sprint and Global One (now Equant), Virtela is poised to stake a large foothold in the burgeoning network VPN services market. The company is already establishing its market leadership having completed the most advanced network-based VPN worldwide network and securing more than a dozen customers, including one of the nation's largest wireless services carriers and one of the world's largest information technology companies."In a separate release:DENVER -- Virtela Communications Inc., a global managed virtual private network (VPN) services and solutions provider, today announced the official launch of the company and its complete suite of Internet Protocol (IP) networking solutions. Virtela delivers the most cost-effective way to enable enterprises to communicate with branch offices, remote workers and business partners throughout the world. Its advanced network-enabled architecture – the IP Service Fabric (IPSFSM) – allows customers to deploy multiple services over one private network to substantially reduce capital and monthly costs while providing interoperability with their legacy networks. Unlike other VPN service providers, Virtela’s services also include integrated security services, such as network-based firewalls; next generation applications, including the first fully encrypted, TV-quality global IP videoconferencing service; and professional services that offer design, implementation and 24x365 worldwide management of the end-to-end enterprise network. “Virtela provides must-have services for enterprises today – connecting corporate offices and employees regardless of their location or network access – and delivers them with the highest performance and lowest monthly cost,” said Vab Goel, Virtela’s chairman and CEO. “Our customers have already seen an average monthly savings of 50 percent. The savings continue to increase as they deploy additional services over their new enterprise network, such as our secure TV-quality videoconferencing and secure voice over IP services between branch offices. Virtela is unique in its flexible, consultative approach to every enterprise customer, large or small, resulting in enterprise network solutions tailored to meet their specific needs.” Virtela Communications Inc.

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