Redwood City, Calif.-based start-up
has secured $14 million in series B financing. Deutsche Bank eVentures led the second-round financing, which valued Gilian at $60 million post-money.
As the lead investor, Deutsche Bank put $5 million into the firm. Venture capital company Ascend Technology Ventures invested $2 million. Israeli funds Polaris Venture Capital and Evergreen also took part, joining Chase Capital Partners, one of the company's initial investors alongside Polaris.
Other international strategic investors are expected to join the financing efforts within the next several days, increasing the amount of capital raised.
While the second private placement was taking place, Gillian took a $2 million bridging finance loan from Evergreen. After the financing round was completed, Evergreen substituted the loan for equity and added another $2 million above and beyond the original sum.
Gilian develops Internet security solutions for websites. The company's flagship product is the ExitControl G-server, which extends the organization's security perimeter by controlling the Web site's exit point to provide a solution to hacks and defacements. G-Server prevents damage to website data by transparently intercepting and replacing corrupt, altered or defaced content before it is released to the public domain.
Unlike other security products that try to stop outsiders from getting in, the ExitControl G-server works by protecting the data stream as it leaves the inside network.
All traffic coming out of a Gilian-protected Internet site is monitored and filtered. If interference is detected or the content distorted, the system immediately replaces the corrupt data file with an intact file stored inside the system and notifies the system administrator. Users remain unaware of any problems.
During the first quarter of 2000, Gilian made its first sales of several hundred thousand dollars. In 2001, the company expects sales to reach several million dollars. Gilian hopes to market its product to content sites, financial service organizations, and E-commerce providers.
The firm views Deutsche Bank as a strategic partner and a potentially huge customer. Gilian hopes that the bank will help them penetrate the financial services sector.
Gilian Technologies was founded in 1998 by CEO Rafael Feitelberg, CTO Shaul Levi and COO Assaf Topaz. The company employs 65 people, including its at R&D center in Herzliya, Israel and at marketing branches in Massachusetts and in Silicon Valley, California. Last year Gilian raised $5.5 million in its first private placement.
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