CREDANT Technologies Secures $16 Million Series B Funding Led by Crescendo Ventures with Strategic Investment by Cisco Systems
Dallas, TX – November 8, 2004 – CREDANT Technologies??, the market leader in providing software that enables organizations to control security for the mobile enterprise, today announced completion of $16 million in venture financing, bringing the company’s total invested capital to $38 million. CREDANT’s ability to clearly demonstrate market leadership through product innovation, customer acquisition and strategic relationships with key industry leaders has attracted new financing from lead investor Crescendo Ventures, and a strategic investment by Cisco Systems, Inc. Crescendo Ventures is an international venture capital firm that focuses on accelerating the growth of high-potential companies. Existing investors Austin Ventures, Menlo Ventures and Intel Capital also participated in the financing round. Funding will be used to accelerate the company’s leadership position by expanding sales, marketing, and product innovation.
CREDANT’s business hypothesis is based on the fact that computing and communications has historically come in “waves.” The first wave was mainframes, followed by PCs and client/server in the early 1980s, and the Internet in the mid-1990s. Now, computing and communications is on the verge of a fourth wave- pervasive mobile and wireless computing. Each wave achieved rapid market adoption because it afforded benefits of increased productivity and reduced costs, but the benefits were not achieved until an “ecosystem” of tools specific to the wave was established.
Mobile and wireless computing requirements differ from prior waves’ requirements. Mobile devices such as laptops, smartphones and PDAs are occasionally connected to the enterprise network or server, and exist in a heterogeneous environment of operating systems and communications. While laptops are mostly company-owned and distributed, smaller mobile devices are frequently owned by individuals and are unsanctioned and unmanaged, with major implications to the enterprise. First, existing PC and desktop security is not architected for occasionally connected devices. Second, the computing power of mobile devices rivals that of early PCs. Third, the traditional network perimeter is now extended to mobile end-points used to transact business in airports, hotels, and coffee shops. Never before has corporate data been so available and less secureAccording to Gartner, 40% of corporate data will reside on mobile computing devices by 2005. This level of penetration creates the very real possibility that any laptop or $300 mobile device left unsecured and unmanaged could expose millions of dollars’ worth of enterprise data.
CREDANT provides security software specifically for the new wave, occasionally-connected mobile computing devices, and sets the standard for innovation by protecting new network end-points with a policy-based security and management solution. Robust, on-device security protects sensitive information stored on laptops, smartphones, tablet PCs and PDAs by controlling access to the device, encryption of the stored data and use of the device’s functions. The centrally managed solution tightly integrates with existing enterprise directories-allowing IT to cost-effectively detect, secure, control and enforce user policies across the diverse computing devices and operating systems used by its mobile workforce.
“We are honored and privileged to add Crescendo Ventures and Cisco Systems to our team,” said Bob Heard, President and CEO, CREDANT Technologies. “Crescendo’s expertise in accelerating growth and international markets will add significant value as we expand our markets beyond North America. Cisco’s evaluation and selection of our products for internal use and strategic investment will fuel our product innovation from an enterprise viewpoint. And the continued confidence shown by our current investors-Austin Ventures, Intel Capital and Menlo Ventures-is a testament to their confidence in our market leadership and team.”
“We are impressed with CREDANT’s ability to rise to a position of market leadership in the emerging, high-growth mobile security market in such a short timeframe,” said John Borchers, General Partner, Crescendo Ventures. “CREDANT has proven technology, customer acceptance and an outstanding management team. We feel confident that as they continue to expand globally, they will become the world leader in security solutions for the mobile enterprise. I look forward to working on the company’s Board of Directors.”
Investors Commend CREDANT’s Business Performance
“As the first CREDANT investor in September 2001, we have watched the management team consistently drive the company to market leadership during difficult economic times, while continuously demonstrating its ability to deliver market-driven products to a growing base of blue-chip customers in a wide range of industries,” said Chris Pacitti, General Partner, Austin Ventures. “We are behind CREDANT 100% as they continue to drive the company to new levels of success in the mobile security market.”
“We are very enthusiastic about the progress CREDANT has made since our initial investment in 2002. CREDANT continues to demonstrate support for complex, large-scale implementations that consist of thousands of users, and has successfully penetrated key vertical markets, with customers in the federal, manufacturing, insurance, healthcare, high-tech and financial services sectors. This funding, combined with the increased pace of activity with partners and customers, will enable CREDANT to solidify its leadership position in the mobile security market,” said Pravin Vazirani, Menlo Ventures.
About Crescendo Ventures
Crescendo Ventures is a global venture capital firm that provides early-stage funding and growth resources to high-potential companies in the communications and enterprise infrastructure industries. By collaborating with entrepreneurial teams to grow market-leading companies, Crescendo Ventures uses its industry expertise, team-based development model and global network to help high-growth companies achieve their full potential. Founded in 1993, Crescendo Ventures manages more than $1 billion from its headquarters in Palo Alto, California and offices in Minneapolis and London. For additional information on Crescendo Ventures or its portfolio companies, please visit www.crescendoventures.com
About Austin Ventures
Austin Ventures has been working with talented entrepreneurs to build valuable companies since 1979. With $2.4 billion under management, AV is the most active venture capital firm in Texas, and one of the most established in the nation. With a focus on enterprise software, computer and communications hardware, and business services, Austin Ventures invests at all stages of company development, from $100,000 “planned experiments” to $50+ million investments in management buyouts.
About Menlo Ventures
Since its inception in 1976, Menlo Ventures has helped visionary leaders turn technical innovations into world-class companies. Menlo has over $2.7 billion under management in nine venture capital funds, and currently invests in the Internet infrastructure and services, software, and communications sectors. The Menlo Ventures team is a group of investment professionals with over one hundred of years of collective experience in technology, marketing, sales and general management. Their combined knowledge and expertise support emerging growth companies in achieving their maximum potential. Menlo Ventures has invested in over 240 companies in the past 25 years. Many of these companies have become leaders in their respective markets. Some of Menlo’s prior investments include UUNET Technologies, Xros, Cyras Systems, Hotmail Corporation, Infoseek Corporation and Clarify. Menlo Ventures is proud of its reputation as highly skilled and ethical investors who help new companies define strategy, recruit the best management talent, forge industry partnerships and corporate alliances, and attract investment capital.
About Intel Capital Intel Capital, Intel’s strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel’s strategic interests. Intel Capital invests in hardware, software, and service companies in several market segments, including computing, networking, and wireless communications. For more information, visit http://www.intel.com/capital.
About CREDANT Technologies
CREDANT Technologies is the market leader in providing software that enables organizations to control security for the mobile enterprise. The award-winning Enterprise Edition of CREDANT Mobile Guardian protects corporate data with robust cross-platform security for smartphones, laptops, tablet PCs and PDAs, while uniquely integrating with enterprise directories for centralized security policy management. CREDANT Mobile Guardian Group and Personal Editions enable organizations to safely mobilize applications for groups of users and individuals. Customers are assured that the CREDANT solution they select today can be upgraded to support their future mobile security requirements. Strategic partners and customers include Global 2000 companies such as EDS, Extended Systems, Hewlett-Packard, IBM Global Services, Intel, Microsoft, PalmOne, PalmSource, Schindler Elevator, Symbol and U.S. Army Medical Command. CREDANT is recognized as the visionary leader in mobile data protection by Gartner and has been selected by Red Herring as one of the top 100 privately held companies for 2004. Austin Ventures, Crescendo Ventures, Cisco Systems, Intel Capital and Menlo Ventures are investors in CREDANT Technologies. For more information, visit www.credant.com.