BroadWare nets $7.5 million

Company will use the VC funds for sales and marketing
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Saturday, March 1, 2003

CUPERTINO, Calif. - Network video monitoring developer BroadWare Technologies netted $7.5 million in the company’s second round of venture capital funding, this time bringing on new investors to buoy the company’s focus on sales and marketing to its target market.

With its new round of capital, which follows a $7.7 million round in 2001, BroadWare will more aggressively target the systems integration channel with its network video monitoring system, specifically integrators already active in the government sector. Company officials have identified that market as the company’s initial market for its network video technology. The funding brings the amount of capital the company has received to $20 million.

Officials at Dali Hook Partners, a new investor in the video firm, said their investment was based on the company’s technology as well as the foundations of its business plan and how it plans to gain market share.

“We could not find anywhere else a video operating platform that would enable you to record video, store it and instantly retrieve it,” said Paul Dali, founder and managing general partner of Dali Hook Partners, a Menlo Park, Calif.-based venture capital firm that focuses on early stage enterprise software, communications and semiconductor companies.

The company’s distributed video monitoring platform, which can distribute, archive and manage video from anywhere from a dozen to several thousand cameras, according to company officials, can be used with many other systems, such as facial recognition, access control systems or even weapon systems.

“Large integrators who have been doing a lot of IT work for the government over the past several years are now finding the government asking them for network video systems,” said Bill Stuntz, chief executive officer of BroadWare. “They haven’t necessarily done a lot of that in the past so we add a very important function to their list of capabilities.”

Through a combination of homeland security trade shows as well as individual visits to companies, BroadWare plans to work at bidding jobs with systems integrators in the government sector, eventually expanding to the enterprise and commercial markets.

“Our job is to empower integrators to win more contracts and then approach the enterprise market through integrators or other channel partners,” Dali said.

The BroadWare system is already installed at such locations as Argon National Laboratories, Delaware Department of Transportation installations and other government and defense related surveillance installations.

Other investors in the Series A1 funding included Sigma Partners, McKenna Ventures, Defta Partners, New Vista Capital and NetService Ventures.