Alert Logic Closes $8.25 Million in Series C Financing
Funding will Accelerate Growth of SaaS Security Front Runner
HOUSTON – March 4, 2008 – Alert Logic, an award-winning provider of on-demand IT compliance and security solutions and a client company of the Houston Technology Center, today announced that it has raised $8.25 million in Series C financing. The round was led by Updata Partners and includes existing investors Hunt Ventures, OCA Ventures, DFJ Mercury and Access Venture Partners. Concurrent with the funding, Carter Griffin, partner of Updata Partners, has been appointed to Alert Logic’s board of directors.
Alert Logic will use the new round of financing to fund its rapid growth and provide innovative IT compliance and security solutions to mid-sized organizations. Fueled by the rise of industry and government regulations such as the Payment Card Industry Data Security Standard (PCI DSS) and the Sarbanes-Oxley Act (SOX), organizations are increasingly faced with compliance challenges. With its Software-as-a-Service (SaaS) platform, Alert Logic is uniquely positioned to help companies comply with these regulatory mandates by offering technology that is the easiest to buy, implement, and use.
“The need has grown rapidly for IT solutions that help mid-sized companies comply with industry and government regulations and protect their IT assets. With their SaaS delivery model, Alert Logic is at the forefront of innovation in this expanding market,” said Griffin. “With their award-winning technology, well-developed channel partners, and experienced management team, Alert Logic is well positioned to take advantage of this growing opportunity.”
Alert Logic more than doubled its customer base in 2007 to nearly 400 clients. The company also reached several noteworthy milestones, including the launch of the industry’s first SaaS-based log management solution, industry recognition for its product and business achievements, and the addition of several key partners.
“The mid-market is struggling to deploy technology that can protect networks against the latest threats and also meet the requirements of regulations like PCI and SOX. The success of our IT compliance and security solutions has shown that the SaaS model is attractive to mid-sized companies that want to quickly and easily solve complex compliance and security problems,” said Michael Turner, president and CEO of Alert Logic. “Our mission is to build upon this success by continuing to deliver the industry’s most innovative technology, and this new round of funding will help us achieve our goals.”
About Alert Logic
Alert Logic is the leading provider of on-demand compliance and security solutions for mid-sized organizations. By enabling its customers to detect threats, eliminate vulnerabilities, and manage log data, Alert Logic provides the easiest way to secure networks and comply with policies and regulations. Alert Logic’s on-demand platform utilizes software-as-a-service to deliver the benefits of rapid deployment, zero maintenance, and no upfront capital costs. As a result, Alert Logic customers benefit from easy and affordable compliance and security. Based in Houston, Texas and founded in 2002, more information about Alert Logic can be found at http://www.alertlogic.com.
About Houston Technology Center
Houston Technology Center (HTC) is a business accelerator that assists Houston-based emerging technology companies in key sectors such as: Energy, Information Technology, Life Sciences, Nanotechnology and NASA-originated technologies. See www.houstontech.org for more information.
About Updata Partners
Based in Reston, Virginia and Edison, New Jersey, Updata Partners is a leading venture capital firm that invests in growth stage information technology companies with innovative intellectual property enabling market-leading products and services. Led by an investment team averaging more than 20 years of operational and private equity experience in the technology industry, we seek investments where the combination of our financial backing and operating expertise will accelerate growth. With close to $500 million under management, the firm also selectively provides recapitalization and management buyout financing. For more information, visit http://www.updatapartners.com
About Access Venture Partners
Access Venture Partners is a seed and early stage venture capital fund. The Fund invests between $250,000 and $2,000,000 in mid-continent technology companies with hyper-growth potential. We have offices in Austin and Denver, two of the most active technology markets in the country. Access Venture Partners is backed by large public pension plans, family offices, foundations, successful entrepreneurs and corporate executives. For more information, please visit http://www.accessventurepartners.com.
About DFJ Mercury
DFJ Mercury is a Texas-based, seed and early stage venture capital fund. We invest in companies addressing large market opportunities in information technology, applied materials and life sciences. DFJ Mercury is part of the global intelligence network of Draper Fisher Jurvetson funds. We seek to seek to partner with extraordinary entrepreneurs and leverage our network to help build globally competitive businesses. Our team has a long track record of launching, growing and investing in start-up technology companies and our philosophy is to help entrepreneurs build their businesses even from the very early stage. For more information, please visit http://www.dfjmercury.com.
About Hunt Ventures
Hunt Ventures, LP is a venture capital firm focused on investing in early-stage technology companies. Hunt Ventures’ initial investment amounts typically range from $500,000 to $4 million with additional capital available to support future expansion. Hunt Ventures has offices in Dallas and Austin and invests on a national basis with a particular focus on the Texas region. Hunt Ventures has invested across multiple industry sectors including software, communications, and semiconductors. Beyond its capital investment, Hunt Ventures actively works with entrepreneurs to build great companies that address unmet needs in the marketplace. Hunt Ventures is part of the group of privately held companies that are wholly owned subsidiaries of Hunt Consolidated, Inc. ("HCI"). For more information please visit www.huntventures.com.
About OCA Ventures
OCA Ventures is a venture capital firm focused on investments in companies with dramatic growth potential, primarily in technology, financial services, for-profit education and technology-enabled services. OCA Ventures believes that venture capital investing is successful when a strong partnership is forged with the entrepreneurs in which it invests. This active partnership approach is how OCA Ventures manages financial and operational risk. OCA Ventures is backed by the entrepreneurs who founded and built O'Connor & Associates, the derivatives trading firm that was acquired by Swiss Bank (subsequently UBS). OCA Ventures is based in Chicago and has investments throughout the United States. For more information, please visit http://www.ocaventures.com.