Bradford Networks, a tech boom-era startup that spent many of its early years regrouping after the telecom bust, on Wednesday said it raised $8 million in its second round of funding, adding that it is seeing strong demand for its network access control technology. The funding, from Updata Partners and Windspeed Ventures, follows a $2 million Series A round from Windspeed in 2006, as well as an $800,000 internal round in the interim.
Bradford, which was founded in 1999 as a software consulting company, later restructured around network access control, focusing on so-called edge enforcement products, which block access before would-be intruders get onto the network. It initially targeted the education sector and now has about 400 customers, mostly schools and universities, which Bradford says face unique security challenges a couple of times a year when a mass of new students arrive. However, it says its technology is gaining interest from other industries from health care and financial services to energy and hospitality.
"We'd like to think of this as our last funding," Bradford founder and CEO Michael Gadoury says. "But there is so much opportunity right now that we might opt to raise more money so we can expand faster."
One estimate from Gartner projects that the network access control market, which grew 87% to $225 million in 2007, will double in size this year.
The technology Bradford offers today is security software delivered on an appliance, which is aimed easing installation and maintenance. The opportunity to expand it has seen in recent years follows a lengthy early stage of cautious growth and self-funding while it considered how it could best incorporate its technology into a viable product. Gadoury says the company has better technology today because of the early challenges it faced.
"When the tech sector took a hit in early 2000, consulting arrangements were harder and harder to get. Basically, we were looking for a niche for the intellectual property that we had. We really listened to a lot of people, and we grew the product based on the real need that people told us about. We were very customer-focused, and that has paid off in huge dividends."
See June 4 funding announcement from Bradford Networks
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