News & Events
TraceSecurity Adds $3M For Sales and Engineering, Adds To Its Board
VentureWire, 11/08/2005
Clancy Nolan
Though it originally targeted up to $10 million, TraceSecurity Inc., a provider of enterprise network security software, has closed its Series B round with $3 million from members of its board.
Dennis Cline, founder and principal of DMC investments and chief executive for security company netForensics Inc., led the round. Tommy Frazer and newly named director Sandra Bergeron also participated in the up round, which closed about three weeks ago.
TraceSecurity lowered its target based on positive cash flow, said Chief Executive Peter Stewart, adding that the company began talking seriously about the round several months ago. He declined to discuss the company's revenue or valuation following the funding.
Stewart said that the firm did not have immediate plans to raise additional money from either individual investors or venture firms.
The financing, which brings the company's funding to nearly $3.9 million, will be used to add to TraceSecurity's sales and marketing team and to outsource various product development efforts.
TraceSecurity's suite of software is designed to provide pro-active security protection, including spam filtering, regulation compliance, and vulnerability assessment, among other features. The software - which is targeted at mid-sized companies - is designed to essentially conduct "ethical hacking," detecting vulnerabilities in corporate networks.
The company's customers, which reach across a range of sectors including financial services, insurance, energy, government and manufacturing, include Farm Credit Bank of Texas, the Louisiana Lottery Corp., and the Austin-based Government Employees Federal Credit Union.
TraceSecurity also named Sandra Bergeron to its board. Bergeron, who serves as executive vice president of corporate development for McAfee Inc., joins Cline, CEO Peter Stewart, co-founders Robert Guba and Jim Stickley and financial consultant Thomas Frazer.
During more than a decade at McAfee, Bergeron has also worked as president of the McAfee PGP security business and as senior vice president of U.S. sales for the McAfee security business unit.
Stewart, who founded the company with Guba and Stickley, also served at McAfee previously, as executive vice-president and general manager.
TraceSecurity is based in Baton Rouge and has offices in Austin, Portland, Ore., and San Diego. The company has about 33 employees.