Press Releases

Network Mgmt Software Maker Voyence Picks Up Series C Round Worth $12M

VENTUREWIRE
Wednesday, November 03, 2004

Richardson, Texas -- Voyence Inc., a provider of network configuration management software, said it has closed a Series C funding of $12 million.

New investor Canaan Partners led the round, with participation from previous investors InterWest Partners, Sevin Rosen Funds, CenterPoint Ventures, HO2 Partners, STARTech Early Ventures and BancBoston Capital.

"Canaan had done its research and looked at competition. I like that they have a great personal network in the security and network monitoring markets, and they're willing to help us," said President and Chief Executive Susan Nash.

The new funding brings total capital raised to $42 million. The
company's founding venture investment, a $12.4 million Series A led by H02, was provided in Oct. 2000. Nash noted that Interwest, which led Voyence's $18 million Series B round in August 2002, remains the largest stakeholder in the firm following the close of the Series C round.

As a result of the new investment, Skip Glass, a venture partner with Canaan Partners, has joined Voyence's six member board.

Nash called the Series C a "significant" up round. "The funding is to fuel expansion," she said, noting that "the money isn't needed for running the company." Going forward, Voyence plans to expand its international and government sales, increase business development activities, and advance research and development in its network service delivery strategies.

Voyence's software products are designed to assist IT professionals in defining, validating, deploying and managing network devices. Its flagship offering, VoyenceControl, has the capacity to support tens of thousands of devices across heterogeneous networks, increasing network availability and improving security by managing and maintaining critical network devices and services.

Since 2002, the Richardson, Texas-based company has added 14 new clients, most recently the financial services provider CUNA Mutual Group. "The finance vertical is hot for us," said Vice President of Worldwide Marketing Michael Bunyard. VoyenceControl is used by managed service providers, large enterprise organizations and government agencies.

Nash said that Voyence is taking steps to go after work in the public sector, and will put part of the new funds towards R&D expansion in that sector. Currently, she said, the National Security Agency is working with Voyence and its government system integrator, Booze Allen Hamilton. "The scope is huge for government projects."

Voyence has 80 employees and expects to increase staff to 100 in the next couple months, with a focus on customer support here and internationally.

The company - which now has one U.K. customer and four European resellers - plans to increase its international business by 30% in 2005. Towards this goal Voyence will look to establish reseller agreements in Australia and Japan.

Nash said that last year, the company generated revenue of several million dollars. "We're getting to double digits this year," she noted, projecting a growth of about 50%. Voyence is "close to profitable," and is expected to reach that point by the end of 2005.

Nash said one of Voyence's differentiators is its scalability. The product can handle "25,000 to 200,000 devices." Also, she said, Voyence has "referencable" customers. "It's tough to make sure you have happy customers, and we do."

http://www.voyence.com

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©2004 Technologic Partners

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