Vsecure secures $4 million at $8m post-money company value

Demand for products sharply rose after September terror attacks in U.S.
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Vsecure Technologies has secured $4 million by private placement at an $8 million post-money company value. The firm may get another $2 million from new investors, CEO David Saar said.

The company develops network security solutions that defend corporate networks against attacks by hostile applications or "bombardments" of requests.

Saar said that demand for security products soared after the September 11 terror attacks in the United States, as did requests to invest in the firm.

The round was led by the Hyperion venture capital fund, which placed $2 million. Information-security firm Comsec placed about $500,000, bringing its shareholding to 7% after full dilution.

Saar, who formerly worked with ECI Telecom (Nasdaq:ECIL), said that the proceeds will be used to complete the development of the first generation of Vsecure's technology, and to commence marketing.

The firm plans to expand its operations in the United States during the first quarter of 2002, and to recruit new workers for its R&D unit in Israel.

Vsecure, which was founded in 2000 by Avi Elboim, has 22 employees working in Rishon Letzion.