Quarrymen Dig Up Another $18M
The new funding, jointly led by new investor Westbury Partners along with existing stakeholders 3i Group plc and Jerusalem Venture Partners, will take the startup to a cashflow positive position by the beginning of next year, according to CEO Ian Mashiter. Much of the new funding will go towards customer support and additional sales and marketing resources, adds Mashiter, the former founder of multiservice switch maker Ennovate Networks (see Ennovate Shuts Down).
In a nutshell, Quarry's edge router gives service providers the capability to offer managed security services, such as firewalls, intrusion detection, virus scanning, and secure remote access, to enterprise customers. With the security sector one of the hottest around at the moment, and with carriers worldwide looking for ways to provide revenue-generating services over their existing networks, Quarry actually raised more money than it had been seeking, says Mashiter.
Also in Quarry's favor is that it has some customers under its belt, including a prominent broadband service provider in Korea (see Quarry Wins First Customer). Mashiter also says the company is involved in more than 10 trials with carriers at present, and is engaged in talks with a number of potential partners as it looks to ramp up its market presence (see StraitShot Picks Quarry for VPN Service, InTouch Selects Quarry, and Quarry Wins First Customer).
This is the area where Quarry needs to do the most work, believes Ron Westfall, principal analyst for broadband infrastructure at Current Analysis. "Quarry needs better channels. Competitors such as Juniper Networks have top-tier partners, such as Siemens. Quarry lacks the equivalent."
In Quarry's favor, however, the latest funding is "a de facto endorsement of the management team, the market focus, and the technology. It is targeting a market that is attracting genuine investment from carriers and enterprises," says Westfall.
— Ray Le Maistre, International Editor, Boardwatch