ForeScout Technologies, which develops network security products, today announced the completion of its first institutional funding round. The company raised $12 million from Accel Partners of the US and Pitango Venture Capital (formerly Polaris Venture Capital) of Israel.
ForeScout was founded in early 2000 and completed a seed round of financing from the BCS Fund and private investors immediately thereafter. The company said that the current round succeeded in adding top-tier investors internationally and locally in Israel.
ForeScout is developing products that are designed to improve the level of security for corporate networks while reducing the cost and effort to manage and implement effective security. The company has an R&D center in Tel-Aviv and is setting up its headquarters in the US.
ForeScout executive chairman Hezy Yeshuran said, “This investment in ForeScout, by such highly rated venture capital firms such as Accel Partners in the US and Pitango in Israel, demonstrates remarkable confidence in the security solutions we are developing. The capital from our new partners will help the company penetrate the market quickly, and realize its product development plans.”
Accel partner Theresia Gouw Ranzetta added, “The recent number of attacks against corporate networks around the world has only highlighted the fact that network security is a top concern for any business on the Internet. We believe that ForeScout’s technology will significantly improve the security networks that companies use for communication, collaboration, and transactions.”
Accel Partners has over $3 billion under management, and has invested in over 200 software and communications companies since its founding in 1983. Accel porfolio companies include Foundry Networks (Nasdaq: FDRY), RealNetworks (Nasdaq: RNWK), RedBack Networks (Nasdaq: RBAK), UUNET (acquired by Worldcom), ArrowPoint (acquired by Cisco) and Portal Software(Nasdaq: PRSF).
Pitango Venture Capital managing director Rami Kalish said, “ForeScout is positioned as an innovative player in the real time data security arena, managed by a mature team of professionals with extensive experience and deep technological knowledge.”
Pitango has been investing in technology since 1993. The company currently manages several venture funds totaling over $700 million in committed capital invested in more than 80 companies including AudioCodes (Nasdaq: AUDC), Chromatis (acquired by Lucent), CardGuard (SWX New Market: CARDG), and Radware (Nasdaq: RDWR).
Published by Israel's Business Arena on 22 August, 2001