Internet security start-up gets $13 million in funding

[InfoSec News <isn () C4I ORG>]

http://news.cnet.com/news/0-1007-200-4500158.html?tag=st.ne.1430735..ni

By Reuters
Special to CNET News.com
January 16, 2001, 4:50 p.m. PT

SAN FRANCISCO--Fidelity Ventures, the venture capital arm of Fidelity
Investments, on Tuesday provided $7.5 million to lead a $13 million
financing round for Internet security start-up e-Security.

The round marks the first institutional investments in the Rockledge,
Fla.-based e-Security, founded in July 1999 with $2.2 million by
Arthur Allen, chief executive of Allen Systems Group, the largest
solely owned, privately held software company.

According to e-Security President and CEO Nicola Sanna, Fidelity
Ventures provided $7.5 million to the company, while Updata Venture
Partners supplied $5 million and other individuals invested a total of
$500,000.

Updata Venture Partners is the venture arm of Updata Capital, a
Reston, Va.-based investment bank specializing in mergers and
acquisitions of information technology companies.

The $13 million will be used to promote e-Security, double its staff
by June and move toward an initial public offering within 16 months,
Sanna said.

The company develops Internet security platforms with software and
other devices allowing real-time surveillance of networked computers
and other devices from a single console.

"When it comes to the enterprise level, we haven't seen any
competition," Sanna said. "Instead of growing incrementally, we would
like to establish leadership in this market."

Fidelity Ventures has more than $300 million in assets under
management.

Tuesday's investment in e-Security follows another large financing
round for another Web security company this month.

Earlier this month, semiconductor maker Intel, computer maker Dell
Computer and computer networker Sun Microsystems joined a $33 million
financing round for Entercept Security Technologies, a San Jose,
Calif.-based firm that develops technology to identify and intercept
hackers.

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