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| VoIP Security Provider Sipera Gets $10M Series C |
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Dow Jones VentureWire | , | October 03, 2007
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Sipera Systems Inc., a provider of security equipment for real-time communications, has secured a $10 million Series C round led by new investor Duchossois Technology Partners.
Existing investors Austin Ventures, Sequoia Capital and STAR Ventures also participated.
This is the first investment from the second fund of Duchossois Technology Partners, which has the Duchossois family as its sole limited partner, said Tony Seth, one of the firm's general partners, who declined to disclose the size of the fund, but said that $100 million of it will be allocated to venture capital.
Last year Duchossois opened an office in Austin, Texas, which Seth oversees, to make more investments in Texas companies. "We saw this as an attractive market for venture capital and wanted to plant a flag," he said.
Sipera's security equipment provides enterprises with security for communications in real time that use Internet protocol, such as voice and instant messaging. Although security threats to these systems are not as prevalent as those that threaten personal computers, the number is increasing, said Seshu Madhavapeddy, the company's president and chief executive.
"The market is going to continue to grow in need as more VoIP gets deployed in the enterprise," Seth said. With the products that the company has built, Duchossois anticipates a strong demand in the carrier market as well as the enterprise, he added.
The proceeds of this round will be used to expand the company's operations to Europe and Asia sometime in 2008, Madhavapeddy said.
Sipera faces competition from companies including Convergence Inc., which is backed by Globespan Capital Partners, Highland Capital Partners and North Bridge Venture Partners; and SecureLogix Corp., whose investors include Castletop Capital, First Capital Group and Symantec Corp.
The company has raised a total of $29.5 million in funding since its founding in 2003.
Seth will join Sipera's board of directors as a result of the financing.
By Scott Denne
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