Security Firms Win Funding

Counterpane Internet Security, a provider of managed-security monitoring services, said Tuesday it received $24 million in new funding in its third round of financing.

New investors included Amerindo Investment Advisors, ClearLight Partners, Dell and a Deutsche Bank venture capital fund. Previous investors Accel Partners, Bessemer Venture Partners, The Goldman Sachs Group and Morgan Stanley Dean Witter Private Equity also supplied third-round funding, bringing Counterpane's total funding to $58 million.

San Jose-based Counterpane said it would use the new funding to expand its business development and sales operations, accelerate research and development and support its entry into the Western Europe and Asia-Pacific markets.

Another security firm, Recourse Technologies, also won additional funding. The Palo Alto, Calif.-based software firm, whose products are designed to track and trap hackers, said Monday that it received $20 million in a third round of funding led by Canaan Partners.

New investors Canaan Partners and Intel Capital, along with current investors Doll Capital Management and Menlo Ventures, funded the third round. Recourse now has $28 million in financing.

"We believe that security will be a key requirement for the continued rapid growth of the Internet," said Deepak Kamra, a Canaan Partners general partner who will join Recourse's board of directors, in a prepared statement.