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September 21, 2006
Spreading Of Netnoldege's PAIN Financed
French startup Netnoledge has developed software to make Internet file transfers and communications more secure based on the public key encryption (PKI) protocols. It is the kind of software that enables privacy, authentification, integrity and non-repudiation (PAIN) of data and email exchanges via the Internet.
Screenshot From Netnoledge Showing Non-repudiable Transfers In Progress
The two year old company, which is a Delaware-registered company with offices in Sceaux, France, announced that it raised a first round of financing from DGME FINANCES of an undisclosed amount this week. The new money is for R&D and to expand its efforts in the UK and German markets.
A couple of Swiss banks and French research institutes are the types of organizations that are its early customers, according CEO and founder Michel Doric. He told us that Netnoledge launched the product in February and he's forecasting for end of 2007 sales of €5M.
We checked with one of our VC contacts who has had some healthy liquidity events, as they say, with security software companies over the last ten years and he confirms that PKI and security software in general is still a "vibrant" market.
And that it is indeed possible for a PKI company to reach the kinds of revenues Doric is forecasting if, for example, it manages to get a few large institutions as customers.
PKI has been around for a while and there are products on the market from names like Entrust and DigiCert. What makes this one different is its claim that it is the only one to offer a solution where no third party certificate authority is required.
We don't know the other products well enough in this market to validate that, but what we do see is that Netnoledge is smart in the way that it is securing early stage cashflow.
It is making it easy for companies large and small to make a decision to buy. Customers are offered three ways to purchase: traditional software licensing, full rental model, or subscrition to a hosted PKI platform from Netnoledge.
The latter two sales models mean that it can sign customers up without having to wait until several layers of management in the customer organization agree to write a big cheque for a full-blown client-server software license. That strategy can give startups that all-important inflow of cash to keep it going until it makes some long term licensing deals.
The company founder told the alarm:clock euro that Netnoledge had been self-financed until DGME stepped in. It is currently building up channel partners and OEM deals several countries, including the US.
Read - NETNOLEDGE réalise une première levée de fonds auprès de DGME FINANCES (prminds)
Posted on September 21, 2006 06:39 AM | Posted to News And Updates | Security | Software | Venture Capital | Permalink
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