http://professional.venturewire.com/exclusives.asp?sid=QJONPOPONI
VentureWire Authentication Firm Priva to Close $14M Series A in August By Michelle Tsai 7/4/2002 ARLINGTON, Va. -- Priva Technologies, developer of an authentication platform based on an integrated circuit that performs authentication and security functions, has launched its first product and expects to close $14 million in Series A round funding in a month, said CEO and chairman Jeff Minushkin. The company has secured a lead investor and raised $4.5 million so far in its first institutional round. Mr. Minushkin said the firm has a post-money valuation "in the low 20s." Priva will devote Series A financing to product rollout, marketing, research, and development. The staff size will increase from 23 to 38 by the end of this year, including new chief marketing officer and chief information officer positions. This first round of financing would last for more than three years on Priva's current burn rate. Formed in 2000, the company has developed an authentication hardware and software platform centered around a microchip that performs authentication and security functions. A data center with secure applications servers communicates with the microchip, which can be embedded in computers and handheld devices. Customers would integrate Priva's technology into their back-end systems. The data center validates the microchip and the identify of the person conducting the transaction -- everything from cash payments, medical information, banking, and digital content -- through either biometric scans or pin codes. Mr. Minushkin said the firm is working with beta customers in the financial, government, systems integration, and payments sectors. Priva began producing one of its chips at the end of May and will employ a services-based revenue model. In addition to hardware sales, the company will also derive revenues from services on a subscription basis. Mr. Minushkin said the firm will target the government, financial agencies, and enterprises, which will in turn roll out the system into the consumer markets. Priva will generate about $2 million in revenues this year for the first time, and expects more than $28 million next year. Priva is already looking ahead to Series B financing. The company will begin raising $25 million before the end of this year. Prior to Series A funding, Priva raised $4.5 million from individual investors. The board of directors comprises Mr. Minushkin; Brian Zied, principal with Maverick Capital; Scott Widham, CEO of Capital Cable; Lee DeBoer II, CEO of Automatic Media; Johon Roach, senior client adviser at the Chase Global Private Bank; John Zeeman, co-founder and director of MCI Communications; and John Grimaldi, director of communications for Priva. http://www.priva-tech.com -- ----------------- R. A. Hettinga <mailto: [EMAIL PROTECTED]> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' --------------------------------------------------------------------- The Cryptography Mailing List Unsubscribe by sending "unsubscribe cryptography" to [EMAIL PROTECTED]
