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Web security software maker Finjan Inc. has raised $22 million in a Series E round led by HarbourVest Partners. Other investors in the round include Benchmark Capital, Israel Seed Partners, Benhamou Global Ventures and Cisco Systems Inc. [CSCO]. Of those backers, the name that stands out like a sore router is the one strategic investor in the group: Cisco. The networking giant reportedly eyed Finjan, which is based in Netanya, Israel, and San Jose, several years as a possible acquisition target. Israel has been fertile ground for Cisco, which for years has raided the country for startups in rounding out its line of products for securing computer networks. Cisco's latest investment in Finjan suggests the security company remains in its sights. Founded in 1996 by entrepreneur Shlomo Touboul, Finjan launched its first products in 2001. The company provides software, among other functions, to combat Internet-borne viruses, spyware and "phishing"; detect malware that can penetrate firewalls; prevent data leakage; and ensure that corporate systems comply with regulatory requirements. Finjan has separate products that operate on a network's gateway and on individual personal computers to identify security breaches. Including the latest funding, Finjan has landed at least $50 million in private capital, including raising a $10 million Series D round in 2006, $10 million in 2004 and $8.5 million in 2002. That means Finjan would fetch a hefty price. In 2007, investors in IronPort Systems Inc. earned a 10-fold return when Cisco bought security technology maker for $830 million. Deal multiples have softened since that time, but security software makers continue to command a premium these days. Symantec Corp.'s [SYMC] deal this month to by MessageLabs Inc., a maker of on-demand messaging security services, for $695 million, was valued at five times the target's annual revenue. In another recent acquisition in the sector, security software maker McAfee Inc. [MFE] today completed a $465 million, or $5.75 per share, deal for network security company Secure Computing Corp., which amounted to a 27% premium on the target's share price. [SCUR] --Alain Sherter See Nov. 19 press release from Finjan See Oct. 8 post on Symantec buying MessageLabs from Tech Confidential See analysis of Symantec's deal for MessageLabs from Enterprise Systems .
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