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ELEMENTAL'S SECOND ROUND OF FUNDING TO GROW SECURITY COMPLIANCE MANAGEMENT PRODUCT DEVELOPMENT
Sequoia Capital Leads Series B Funding; Sequoia's Sameer Gandhi Joins Current VCs Bessemer and Mayfield on Board of Directors
SAN MATEO, Calif. - July 12, 2004 - Elemental Security, Inc.T, a company pioneering new technology in enterprise information security with its next generation security compliance management product, today announced it has closed its Series B round of financing, raising approximately $7 million. Sequoia Capital led the investment round, with original investors Bessemer Venture Partners and Mayfield increasing their investment participation as well.
Elemental is developing the world's only product that unifies policy management, host configuration and network access control in one seamlessly integrated offering. For the first time, enterprises will be able to easily express cross-platform security policies that affect individual computers and their behavior on the network, gather meaningful up-to-date information to compare to established metrics, and selectively enforce policies across a diverse, dynamic environment. Security compliance has become a top priority for enterprises due to pressures from increasing frequency and severity of security breaches, and from regulations such as Sarbanes-Oxley (SOX) and the Health Insurance Portability and Accountability Act (HIPAA).
Elemental also announced that Sameer Gandhi, partner at Sequoia Capital, has been named to its Board of Directors. Mr. Gandhi joins existing board members David Cowan, general partner at Bessemer Venture Partners; Robin Vasan, managing director at Mayfield; Dayne Myers, Elemental co-founder and CEO; Dan Farmer, Elemental co-founder and CTO; and security industry veteran Peter Watkins, chairman of Elemental's Board of Directors.
"The current investment climate requires a determined focus on real customer value and a clear differentiation in the crowded security space - and Elemental has both of these attributes," said Gandhi. "The Elemental products address the ever-growing security and compliance issues of enterprises, especially considering the penalties of not adhering to regulatory policies, and the costs just to prove compliance. We are excited by the innovative value the Elemental policy-based security solution brings to the enterprise."
"Customer validation has been most encouraging for us," said Elemental CEO Myers. "We are pleased to have Sequoia lead this Series B investment, which will allow us to further build and deliver valuable security compliance solutions for our customers. Having a Silicon Valley heavyweight such as Sequoia join the two other prestigious firms backing us is great validation of the progress we have made, and the valuable perspective that Sameer Gandhi brings to our Board of Directors will serve us well moving forward."
Elemental aims to help organizations realize cost and time savings by reducing their number of security incidents. Its solution will reduce exposure to risks by providing visibility and understanding of enterprises' computing environments through continuous monitoring. It is also being developed to identify and contain unauthorized machines on the network, and enforce required policies to ensure compliance. The solution will reduce the cost of network and policy administration; and reduce the cost, frequency and effort involved in internal and external audit exercises.
Elemental's products will address enterprise problems such as ensuring that policies are being adhered to by all machines in dynamic computing environments; providing for a unified, up-to-date view of all systems in the network and how they are performing against internal security standards and external regulatory requirements; and enforcing access controls and quarantines on systems not meeting guidelines set up by security and IT administrators
About Elemental
Elemental Security is a pioneer in the Security Compliance Management market. Elemental's products address enterprises' need to centrally manage the security compliance of all computers in their environments. Elemental provides unified visibility and control to manage dynamic computing environments, enabling enterprises to satisfy compliance requirements and measurably improve their security. Founded in December 2002, Elemental is a privately held company backed by Bessemer Venture Partners, Mayfield, Sequoia Capital and Lehman Brothers Venture Partners. The company is headquartered in San Mateo, Calif., and has offices throughout the U.S. Go to http://www.elementalsecurity.com for more information.
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Elemental and the Elemental Compliance System are trademarks of Elemental Security, Inc.