Security firm gets $26 million in first round

San Jose Mercury News, Feb 3, 2004

iPolicyNetworks, a developer of network security systems, received $26 million in venture funding led by Taiwan-based WK Technology Fund, Clearstone Venture Partners and Dali Hook Partners, both of Menlo Park.

The company was founded in January 2000 through the merger of venture-funded Duet Technologies, an electronic design automation firm, and Tunnelnet, an Internet software firm.

Duet's original target market was managed security service providers. With this funding, -- the new company's first -- it is expanding into the enterprise market. The company, headquartered in Fremont with development operations in India, has 140 employees.

Pedestal Networks, a developer of broadband technology, raised $20 million in a third round of venture funding led by new investor Duff Ackerman & Goodrich.

Also participating in the round were existing investors Benchmark Capital, Doll Capital Management and Skymoon Venture. The company has raised $34 million since its founding in 2001.

Pedestal develops hardware to help telecommunications carriers extend digital subscriber line offerings to more customers using existing copper lines. The Fremont company has 50 employees.

ServGate Technologies, a Milpitas network security firm, closed an $18 million mezzanine round of funding led by ComVentures. Joining in the round were ServGate's existing investors, including ChinaVest and WI Harper Group.

The company has raised $43 million since its founding in 1999. The company has 140 employees.

Advanced Analogic Technologies,a Sunnyvale developer of integrated circuits for power management, raised $15 million in a fifth round of venture funding. Battery Ventures led the financing with participation from existing investors Hotung Ventures, InveStar, Maton Venture, Mosel Vitelicand Sunsino Ventures Group.

Some of Advanced Analogic's corporate partners, including Mitsubishi Capital, Vanguard International Semiconductor and VIA, also participated in the funding round with corporate venture investors China

International Development Consulting and Sycamore Ventures. The company has raised $45.1 million since its inception in 1998.

The company's products are used in computers, peripherals and wireless devices, such as MP3 music players, mobile phones and handheld computing devices. It has 113 employees.

Cast Iron Systems, a Mountain View developer of application integration hardware, raised $12 million in a third round of venture financing led by Invesco Private Capital. Previous investors also participated in the round, including Norwest Venture Partners and Sequoia Capital.

The company, formerly known as IronHide, has raised $20.3 million since its inception in 2001. It has 41 employees.

Model N, a South San Francisco business software developer, raised $11 million in a funding led by Meritech Capital Partners. Current investors Accel Partners and Accel KKR-- the private equity investment firm founded by Accel Partners and leveraged buyout firm Kohlberg Kravis Roberts & Co.-- also participated in the financing. The company has raised $37 million since its founding in 1999. The company has 70 employees.

Celequest, a developer of business activity monitoring software, raised $9.1 million in a second round of funding from existing investors Lightspeed Venture Partners and Bay Partners.It has raised $15.6 million since its founding in 2002. The Redwood Shores company has 35 employees.

Pivia Software,a developer of Web applications and site-performance software, raised $9 million in a third round of venture funding from Sutter Hill Ventures and Thomas Weisel Venture Partners.Since its founding in 1999, Pivia has raised $25.6 million. The Cupertino company has 30 employees.