Sources inform ''Globes'' that endpoint security start-up Safend Ltd.has closed its third financing round, raising $9 million from its existing investors, led by an unnamed European private equity fund. Walden Israel, Intel Capital, and Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) also participated. Information security is a field that does not attract substantial amounts of venture capital, although sometimes a funding round stands out a bit more.
Safend has raised $19 million since it was founded, including the present round. Elron, which owns 26% of the company, estimated its value at $20 million before the present round.
Safend's investment in development is leading it to a new field: encryption. Safend CEO Gil Sever said that the company would try to benefit from the growing demand by the bodies bound by the PCI Security Standards Council. Sever said, "Our product will supplement current encryption products."
Safend posted $3 million revenue in 2007 and has an orders backlog of $2 million. The company has 60 employees, mostly in Israel, and 650 customers.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2008
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