Venture investors eager to put money to work in attractive sectors will shower their favorite companies with money. Case in point is the network security provider Astaro.
The company raised a $6.2 million Series A round of funding last July. Less than a year later, the company is expected to announce Monday that it has raised $6.7 million in its Series B funding in an inside round.
New York-based Insight Venture Partners and Munich, Germany-based Wellington Partners, which co-led the company’s Series A round, invested in the Series B, bringing Astaro’s total funding to date is $12.9 million.
Astaro, which is based in Karlruhe-Dulrach, Germany and Burlington, Mass., has sales offices in Europe and plans to expand its presence in Asia through partnerships. The company employs 65 and Jan Hichert, Astaro’s co-founder and CEO, says he expects to have at about 100 employees by next May.
Michael Triplett, an Insight principal and member of Astaro’s board, says that the company’s growth after its Series A round impressed investors enough to warrant a Series B funding.
He says that Astaro’s competitive pricing and performance when matched against larger established security companies is a compelling reason to believe the company will succeed.
Astaro announced that it would use the funding to further the adoption of its network security services, extend its partnership program and to further develop its products. The privately held company has reportedly been profitable since 2000.
The company generates most of its revenue from its business in Germany. It has revenue in the “tens of millions of dollars,” according to its CEO. The company had reached profitability even before raising its Series A round.