Inkra Networks has raised $30.1 million in a Series B deal led by Morgenthaler Ventures. The Fremont, Calif.-based network equipment provider originally sought to raise $30 million and denied Morgenthaler’s request to expand the round. Inkra has now raised $66.6 million from investors that include Battery Ventures, Norwest Venture Partners, Storm Ventures and Greenstone Venture Partners.
“We work in the front end of the data center where all Web applications are brought online,” says Sanjay Dhawan, chief executive at Inkra. “Every Web address you type goes to a data center and a response comes back, we are improving upon that. Our goal is to use the money to transition from R&D to sales and marketing. The goal is to increase the sales reach for our customers.” The company touts 95 employees and will add to that number by year-end.
Ken Gullicksen, a partner with Morgenthaler, joined Inkra’s board as part of the investment. “We spent a lot of time in the data center market and chose Inkra,” Gullicksen says. “Without Inkra’s flexible and rational solution, enterprises and service providers will suffer the pain of run-away appliance proliferation.”
Founded in May of 2000, Inkra picked up its first institutional round of funding in October 2000. The round closed at $36.5 million. It used that money to build its products, which it introduced to the market in April. Savvis Communications is just one of Inkra’s customers. Inkra is already seeing revenue.
Dhawan says the company’s lastest round will take it to break-even and beyond. “We’re not anticipating another round of funding,” he says.
Morgenthaler has its hopes set on an IPO. “We’re looking to build a long-term company and we always look for an IPO. It’s the goal we are supporting,” says Gullicksen.
Contact Danielle Fugazy