Cymphonix, a developer of appliances bringing visibility
and control to network traffic, today announced the successful close
of its Series A funding round. The $4 million raise was led by vSpring
Capital, a leading early stage venture fund. Also participating was
Prospector Equity Capital. The investment will support Cymphonix's
continued expansion of operations and market penetration in the United
States and international markets.
Cymphonix launched its product and channel initiatives on October 1, 2004 and, since then, has expanded its market presence in mainstream and vertical markets. The company, whose products accelerate mission critical application performance by 300 to 500 percent, continues to generate momentum through solution providers deploying network and application management solutions into medium, small and distributed enterprise.
Greg Warnock, Managing Director at vSpring, feels that Cymphonix is well positioned to take a lead position in the network management sector. "The deal came together fairly quickly but I have watched Cymphonix for some time and have been impressed by how the company executed its plan. This is a significant market and Cymphonix has the technology and the team to establish itself as a dominant vendor," said Warnock.
The close of its Series A funding round continues a series of milestone events for Cymphonix, including:
-- Top product awards at Gartner's VARVision and CMP's XChange summits;
-- Exceeding forecasted revenue in each of the first 2 quarters following its launch;
-- The signing of Agreements with over 150 solution providers;
-- The signing of 6 OEM and Licensing Agreements in established vertical and international channels and;
-- The development and launch of Network Composer Version 5.3, which combines industry leading spyware and content filtering with network traffic control into an edge solution that is unique in its implementation.
Juniper CEO Scott Kriens recently described network traffic shaping as being worth "billions and billions of dollars" over the next few years. In assessing projections such as this along with the high premiums recently paid for Peribit Networks and Redline Networks, David Eastman, General Partner at Prospector Equity Capital, sees Cymphonix as being ideally positioned to capture considerable market share. "Application traffic and network management is at an early stage, but the need for this functionality is clearly defined. With its well-executed function set, its position on the network, user interface, price point, market positioning and business relationships, Cymphonix has the opportunity to drive much of the growth of this category into the mid-market," said Eastman.
"In our search for financing, it was essential to partner with investors having the skills and network to contribute strategically as well as with capital," said Kevin Santiago, CEO of Cymphonix. "vSpring and Prospector each bring tangible and critical intangible assets to the company. We are particularly excited by the depth of expertise and intellectual capital that Greg and David bring to Cymphonix."
Greg Warnock and David Eastman each joined the board of directors following the close of funding.
About Cymphonix
Cymphonix Inc., headquartered in Salt Lake City, UT with offices in Langley, WA, establishes control of traffic at the edge of the network, accelerating mission critical application performance by 300 to 500 percent. Its products are unique in allowing companies to easily manage and shape applications at the packet level, thereby prioritizing critical traffic while controlling destructive and less productive applications that access networks by finding open ports. Network Composer(TM) shapes network traffic, eliminates spyware, and provides a more professional and effective alternative to mainstream content filtering solutions. These products help companies understand visually who and what is abusing network bandwidth, enabling problems to be corrected quickly through an elegant, easy-to-manage interface. Network Composer offers solution providers bandwidth management tools for their customers that have previously been affordable only to the enterprise. For more information please visit http://www.cymphonix.com.
About vSpring Capital
vSpring is an early stage venture capital fund focusing on investment opportunities in information technology and life sciences. vSpring capitalizes on the managerial skills and operating experience of its principals to successfully invest in and mentor early stage companies. vSpring has offices in Salt Lake City, Utah and Los Alamos, New Mexico.
About Prospector Equity Capital, LP
Prospector Equity Capital, L.P. (PEC) is a venture capital fund based in Park City, Utah, with primary funding from major public institutional investors. The three principals of PEC are focused on assisting small businesses with unique value propositions to accomplish their strategic objectives. Together, the principals have invested over $200 million of private equity in over twenty companies in the last twelve years. PEC can be reached at (435) 647-3835.
Cymphonix and Network Composer are trademarks of Cymphonix Inc. Other products or names appearing in this document are brands and/or registered trademarks of their respective holders.
Cymphonix launched its product and channel initiatives on October 1, 2004 and, since then, has expanded its market presence in mainstream and vertical markets. The company, whose products accelerate mission critical application performance by 300 to 500 percent, continues to generate momentum through solution providers deploying network and application management solutions into medium, small and distributed enterprise.
Greg Warnock, Managing Director at vSpring, feels that Cymphonix is well positioned to take a lead position in the network management sector. "The deal came together fairly quickly but I have watched Cymphonix for some time and have been impressed by how the company executed its plan. This is a significant market and Cymphonix has the technology and the team to establish itself as a dominant vendor," said Warnock.
The close of its Series A funding round continues a series of milestone events for Cymphonix, including:
-- Top product awards at Gartner's VARVision and CMP's XChange summits;
-- Exceeding forecasted revenue in each of the first 2 quarters following its launch;
-- The signing of Agreements with over 150 solution providers;
-- The signing of 6 OEM and Licensing Agreements in established vertical and international channels and;
-- The development and launch of Network Composer Version 5.3, which combines industry leading spyware and content filtering with network traffic control into an edge solution that is unique in its implementation.
Juniper CEO Scott Kriens recently described network traffic shaping as being worth "billions and billions of dollars" over the next few years. In assessing projections such as this along with the high premiums recently paid for Peribit Networks and Redline Networks, David Eastman, General Partner at Prospector Equity Capital, sees Cymphonix as being ideally positioned to capture considerable market share. "Application traffic and network management is at an early stage, but the need for this functionality is clearly defined. With its well-executed function set, its position on the network, user interface, price point, market positioning and business relationships, Cymphonix has the opportunity to drive much of the growth of this category into the mid-market," said Eastman.
"In our search for financing, it was essential to partner with investors having the skills and network to contribute strategically as well as with capital," said Kevin Santiago, CEO of Cymphonix. "vSpring and Prospector each bring tangible and critical intangible assets to the company. We are particularly excited by the depth of expertise and intellectual capital that Greg and David bring to Cymphonix."
Greg Warnock and David Eastman each joined the board of directors following the close of funding.
About Cymphonix
Cymphonix Inc., headquartered in Salt Lake City, UT with offices in Langley, WA, establishes control of traffic at the edge of the network, accelerating mission critical application performance by 300 to 500 percent. Its products are unique in allowing companies to easily manage and shape applications at the packet level, thereby prioritizing critical traffic while controlling destructive and less productive applications that access networks by finding open ports. Network Composer(TM) shapes network traffic, eliminates spyware, and provides a more professional and effective alternative to mainstream content filtering solutions. These products help companies understand visually who and what is abusing network bandwidth, enabling problems to be corrected quickly through an elegant, easy-to-manage interface. Network Composer offers solution providers bandwidth management tools for their customers that have previously been affordable only to the enterprise. For more information please visit http://www.cymphonix.com.
About vSpring Capital
vSpring is an early stage venture capital fund focusing on investment opportunities in information technology and life sciences. vSpring capitalizes on the managerial skills and operating experience of its principals to successfully invest in and mentor early stage companies. vSpring has offices in Salt Lake City, Utah and Los Alamos, New Mexico.
About Prospector Equity Capital, LP
Prospector Equity Capital, L.P. (PEC) is a venture capital fund based in Park City, Utah, with primary funding from major public institutional investors. The three principals of PEC are focused on assisting small businesses with unique value propositions to accomplish their strategic objectives. Together, the principals have invested over $200 million of private equity in over twenty companies in the last twelve years. PEC can be reached at (435) 647-3835.
Cymphonix and Network Composer are trademarks of Cymphonix Inc. Other products or names appearing in this document are brands and/or registered trademarks of their respective holders.