Softricity Secures $15 Million in Venture Funding
Softricity Secures $15 Million in Venture Funding
Meritech Capital Partners Leads Round for
Aggressive Expansion of Application Virtualization Company
Meritech Capital is joined in this round by existing Softricity investors: FA Technology Ventures, Hunt Ventures, Longworth Venture Partners, Prism Venture Partners, TD Capital Ventures and Technology Link Capital.
“Virtualization is one of the fastest-growing technology sectors, and Softricity is leading the most critical and underserved segment of this market: application virtualization,” said Mark Lockareff, partner at Meritech Capital Partners. “In 2004, Softricity’s revenue increased by more than 300 percent, a strong growth curve that demonstrates the true value it brings to enterprises. We want to help Softricity capitalize on the high demand for its solution and accelerate this growth even further. With its powerful combination of innovative, much-needed technology and visionary management, we are confident Softricity will achieve great success across the globe.”
Softricity will use this latest round of funding to continue driving its rapid growth by enhancing U.S.-bases sales channels and expanding contracts with the federal government while focusing on new customer acquisition and support, global marketing and international sales expansion. Building on early success in Europe, which accounts for 35% of its revenue, Softricity is adding offices in
Softricity attributes its tremendous growth to rapidly escalating global demand for its SoftGrid® application management platform and the promise of its new product, Softricity ZeroTouch™. SoftGrid, which is helping more than 300 customers worldwide accelerate application management and reduce total cost of IT management, transforms applications into centrally managed virtual services that are accessible on-demand by Windows desktops, laptops and servers throughout the enterprise. SoftGrid standardizes application deployment, upgrades, patching and termination, so that IT groups can efficiently manage diverse software assets and easily provide customized desktops to users.
Softricity ZeroTouch, which will be available in Q3 2005, is a self-service solution that empowers business users to get the Windows applications they need on-demand from any place with a web browser – without any intervention by IT or application conflicts.
“We are pleased to be working with Meritech Capital Partners, a distinguished and well-respected venture capital firm. Their investment validates the strength of our growth, the accuracy of our vision and our unique product direction,” explained Harry Ruda, CEO of Softricity. “This round of financing marks a major milestone for Softricity as we have already made excellent headway in product development, building out our global sales organization and increasing our marketing activities. I have confidence that it will quickly ramp Softricity’s growth and continue to propel us to a leadership position.”
About Meritech Capital Partners
Meritech Capital is a leading provider of late-stage venture capital to information technology companies. With over $1.8 billion under management, Meritech seeks to lead investments in the portfolio companies of leading early stage venture capital firms. Meritech pursues traditional growth companies as well as co-investments in corporate buy-outs and spin-offs. Its investments are typically in companies with proven and differentiated technology, rapidly-growing revenue, and seasoned management teams. As a late stage investor, Meritech leverages a broad network of individuals and companies to create strategic and business opportunities for its investments. In addition, Meritech provides guidance on late-stage issues including management incentive plans, IPO market timing and positioning, adviser selection, and post-IPO ownership transition. Meritech is located in
Softricity helps enterprises simplify and accelerate software management with SoftGrid, the industry’s first application virtualization platform. The award-winning SoftGrid utility computing solution transforms applications from products that must be installed locally into virtual services that are centrally managed and deployed on-demand to any Windows desktop, laptop and Terminal Services/Citrix MetaFrame Presentation server. By eliminating application conflicts and regression testing, and increasing change management responsiveness, SoftGrid expedites deployment, upgrades, patches and terminations. Global 2000 companies such as Suncor Energy, Mayo Clinic, Prudential, AIG, and Raytheon use SoftGrid to save tremendous time and money, enhance IT service quality, and transform into more dynamic businesses. Softricity has a multiyear Strategic Alliance with Microsoft Corporation and is Gold Certified Partner. Softricity is also a partner of HP and VMware. More information can be found at http://www.softricity.com.