Leak-Detection Software Vendor Gets VC Funding

Palo Alto, Calif.-based PortAuthority develops software and appliances to prevent what its calls "information leaks." It detects when certain data is made available outside of a company's protected data infrastructure and either quarantines that data, audits it, or encrypts it to prevent its access by unauthorized users.

The company's technology monitors both internal and outbound communications and implements customer policies in real-term, making it useful for protecting data to comply with such regulations as Sarbanes-Oxley, HIPAA, the Payment Card Industry (PCI) Data Security Standard, the Family Educational Rights and Privacy Act (FERPA), and the Gramm-Leach-Bliley Act (GLBA).

With the new D-round of funding, four venture capital firms have invested just shy of a total of $40 million in the company, said Pete Foley, president and CEO.

This should be enough to get to profitability, Foley said. "We've had two quarters where growth has been over 60 percent per quarter," he said.

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PortAuthority sells only through the channel, and currently has 12 solution providers in the United States. Foley said the company is looking to increase its channel presence. "We're looking for privacy integrators with data classification and data assessment experience," he said. "Integrators who work with customers to understand the value of their data."

Foley said the company is not looking to be acquired. "We're keeping our heads down," he said. "We'll look at opportunities with our own investors. Anybody that builds a company for the purpose of being acquired is doomed to failure."