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Viola Networks Secures $11.1 Million in Additional Funds YOQNEAM, Israel & KING OF PRUSSIA, Pa. --(Business Wire)-- Sept. 28, 2004 -- Company Will Apply Funds to Expand Success of its Fast-Growing NetAlly(R) Software, Which Today Provides VoIP Management Solutions to Hundreds of CustomersViola Networks, a provider of real-time IP performance management software, today revealed that it has secured an additional $11.1 million to fund the company's expansion. Participating in this latest round are Evergreen Partners, M/C Venture Partners and Concord Ventures three leading venture firms with substantial track records of success in technology and communications investments as well as existing Viola investors such as Polar Communication. Viola Networks will use the funds to expand the company's already impressive revenue growth, which is more than doubling annually. Today, Viola's NetAlly(R) product family software is currently used by hundreds of service providers, systems integrators and enterprises to ensure that their IP networks are ready to support real-time converged applications such as VoIP throughout the entire product lifecycle - from pre-deployment through daily operations. Specifically, Viola will use the new funds to expand its market activities, sales staff, research and development activities and eventually to extend its reach into additional market opportunities within VoIP. The company plans to significantly expand its human resources and enhance its international presence by establishing its own operations in Europe and the Asia-Pacific. A new lead investor in this funding round is Evergreen Partners, one of Israel's premier venture capital firms focusing on early stage technology investments. With more than $610 million of private equity funds under management and investments in more than 80 technology startups, Evergreen manages one of the largest portfolios in Israel and has executed 25 successful portfolio company exits through IPOs or trade sales - including companies such as Galileo, Radvision and Radware. "The Telecommunications Industry Association predicts that the IP market will reach $18.7 billion in 2007, with a 9.7% compound annual growth rate from 2004 to 2007. IP applications revenues are projected to grow even faster, reaching $11.4 billion by 2007, a 66.5% compound annual growth rate," said Adi Gan general partner at Evergreen. "Viola Networks will succeed in this fast-growing market because its unique software solves the only challenge that might hold the VoIP market back: The need for fast, easy voice quality management and troubleshooting for both pre and post deployments." The second lead investor is M/C Venture Partners, which has long been recognized as one of the most active venture capital investors in the emerging communications and IT industries. The firm has invested in early-stage companies across these segments for more than 20 years. The firm manages more than $1 billion in assets and is currently investing M/C Venture Partners V, a $550 million venture capital fund. The firm has offices in Boston, San Francisco and London. "It is rare when we see a company that is as well-positioned as Viola to succeed in such a high growth market as VoIP," said Matthew Rubins, general partner at M/C Venture Partners. "We are excited to help Viola build upon its already impressive market leadership position in the VoIP management space by enabling the company to expand its market reach even further." Concord Ventures, one of Viola's original investors, contributed significantly to this funding round, including providing on-going financial support during the company's fund raising period. Established more than ten years ago, Concord is recognized as a leader in the Israel VC market, with focused industry expertise in telecommunications, semiconductors, software technologies and medical devices, and an impressive track record with its portfolio of Israel based companies. "We pride ourselves on our unparalleled commitment to our portfolio companies, and Viola is a case in point, " commented Yair Safrai, chairman of Viola's board and a general partner at Concord Ventures. "We have maintained our belief in Viola Networks and the field of IP networks assurance even through the rough times in the industry. This hard work has yielded notable revenue growth and we are sure this will continue." Viola's NetAlly RealTime software system provides one comprehensive tool for pre-service network readiness assessment, post deployment voice quality and VoIP capacity management, as well as on-demand network troubleshooting, as required by real-time VoIP applications. NetAlly VoIP is unique in the marketplace as a single software system that addresses the entire VoIP management lifecycle. "Hundreds of enterprises and service providers are already using Viola's NetAlly software to pre-assess their networks prior to VoIP deployment to ensure a smooth rollout, and Viola is quickly gaining traction among large enterprises and service providers that need a solution to monitor and troubleshoot their VoIP networks on an ongoing basis," said Uri Feldman, president and CEO, Viola Networks, Ltd. "Our fast-growing revenue stream is a tribute to the uniqueness of our software. We are excited that both Evergreen and M/C Ventures joined our investor group, recognizing that the new funding combined with their extensive experience will play a major role in our future growth." About Viola Networks Viola Networks supplies network performance tools to enterprises, integrators and service providers internationally. Viola's comprehensive product line allows service providers, systems integrators and enterprises to ensure that IP networks are ready to support real-time converged applications throughout the entire product lifecycle - from pre-deployment through daily operations. Founded in 1998, Viola Networks is a privately held company, with offices in United States, Canada and Israel. For further information, please visit www.ViolaNetworks.com. |
