January 18, 2008
Anagran Gets $12M For Network Flow Management Equip.
Anagran Inc., a maker of equipment to relieve congestion on wide-area networks, has secured $12 million in Series C funding from its existing backers.Advanced Technology Ventures, Argon Venture Partners, ArrowPath Venture Capital and Draper Fisher Jurvetson all contributed their pro rata share to the round, said Dan Brown, a technology partner at ArrowPath."We talked about it internally and elected not to go outside with the funding round at all," Brown said. "We'll be using this money to get enough of a revenue ramp to be attractive to late stage investors" for the next round.Anagram makes "high-capacity flow managers" for enterprise and carrier networks. Its products are different from WAN optimization or deep packet inspection products because they are specifically built for optimizing the flow of streaming applications over a network, said Dan O'Farrell, the company's vice president of marketing.The company spent the $22 million it had previously raised to build the product and set up case studies to test the return-on-investment that the products can provide. Those case studies are what gave the existing investors the confidence to continue backing the company, Brown said.The company has had some traction in the financial services industry and federal government customers. This round will be used to commercialize the product for mainstream enterprise customers, said Kim Niederman, the company's chief executive.Anagran was founded in 2004 by Larry Roberts, the company's chairman, who previously founded Caspian Networks Inc., which built flow aware routers, like Anagran. That company raised over $300 million at the height of the bubble before closing its doors in late 2006.The company, which has 42 employees, will be looking for its Series D round in about a year, depending on fast the company gains traction, Niederman said.