http://www.redherring.com/Article.aspx?a=11794 April 14, 2005 Wi-Fi network security company Network Chemistry said Thursday it raised a $6-million Series A from VC investors including the CIA's In-Q-Tel investment firm. The company, based in Menlo Park, California, makes radio frequency appliances to monitor Wi-Fi networks. The appliances send messages back to a server installed with Network Chemistry software designed to optimize network performance and keep hackers off the data-laden airwaves. Geneva Venture Partners led the investment round with help from In-Q-Tel and Innovacom, the venture arm of France Telecom [1]. "This is an ideal group of investors," said CEO Rob Markovich. The company impressed VCs last fall at the annual Silicon Valley Bank "best new startup" contest, winning first place in a field of 10. The firm was also profiled by Red Herring (see Wardriving Along Sand Hill Road) [2]. The market for security software to keep Wi-Fi hackers off the network is taking off. Frost & Sullivan predicts companies will sell $200 million in Wi-Fi protection appliances this year. That's double last year's figures. But Network Chemistry isn't the only startup trying to take advantage of this new market. Competitors include AirTight, which got $10.25 million from VCs last year (see VC Action: AirTight Networks Gets $10.25-million Series A for Wi-Fi security [3]). AirDefense and AirMagnet, both Red Herring 100 companies, are also fighting for lucrative contracts (see Top 100 Innovative Companies) [4]. Traditionally, Wi-Fi security companies started with a radio-frequency monitoring device and overlaid security on top of that. On Tuesday, eEye Digital Security announced its entry into the wireless protection market. The company sells vulnerability assessment tools and intrusion-prevention software (see Top 100 Innovative Companies: eEye, Beyond Patches) [5]. eEye has made its Retina network scanning product Wi-Fi-compatible. Although its new software won't do everything Network Chemistry's will, it's clear that cutting-edge security companies are looking to develop a Wi-Fi strategy. [1] http://studio.financialcontent.com/Engine?Account=redherring&PageName=QUOTE&Ticker=FTE [2] http://www.redherring.com/Article.aspx?a=11790&hed=Wardriving+Along+Sand+Hill+Road [3] http://www.redherring.com/Article.aspx?a=11027&hed=VC+Action:+AirTight+Networks+gets+$10.25-million+Series+A+for+wi-fi+security [4] http://www.redherring.com/Article.aspx?a=11067&hed=Top+100+Innovative+Companies [5] http://www.redherring.com/Article.aspx?a=11057&hed=Top+100+Innovative+Companies:+eEye,+Beyond+patches _________________________________________ Network Security - http://www.auditmypc.com Free vulnerability test - How secure is your computer?
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