Active Reasoning Raises Additional $11.5 Million in Financing; Series B Round Brings Total Equity Funding to $23 Million.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. -- Active Reasoning, a leading developer of IT Compliance Solutions, today announced the finalization of $11.5 million in Series B funding. The financing round, led by InterWest Partners, a leading diversified venture capital firm, brings the total amount raised by Active Reasoning to more than $23 million. Existing Active Reasoning investors ArrowPath Venture Capital, ComVentures and ONSET Ventures all participated in the financing round. Doug Pepper, a principal at InterWest Partners, joins the Active Reasoning board of directors. "Recent legislation has been a catalyst for IT compliance spending, and we believe Active Reasoning is in a great position to take advantage of one of the fastest growing market segments," he said. "Active Reasoning has all the ingredients for success -- blue-chip customers, innovative technology, and proven leadership." The landmark Sarbanes-Oxley (SOX) legislation raised the importance of corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. , financial disclosure and public accounting. Active Reasoning's solutions support SOX requirements by auditing the effectiveness of critical IT controls through the detection and reporting of individual actions on material financial applications. "This second round of financing validates our position in the growing IT compliance and change management space," said Marv Tseu, Active Reasoning founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We now plan to increase our product development and sales teams to meet the demands of a rapidly increasing market." Analysts estimate companies will spend $2.5 billion in 2005 complying with the Sarbanes-Oxley Act See SOX. . IT compliance spending is expected to correspondingly increase as auditors look for more specific material financial systems controls. Active Reasoning solutions serve the growing market by strengthening companies' overall change control processes and helping businesses meet external auditor's requirements. "Active Reasoning is at the forefront of addressing today's business Today's Business is a show on CNBC that aired in the early morning, 5 to 7AM ET timeslot, hosted by Liz Claman and Bob Sellers, and it was replaced by Wake Up Call on Feb 4, 2002. compliance needs," said Andrew M. Schroepfer, founder and president of Tier 1 Research. "Leveraging Active Reasoning's solutions, companies can reduce IT compliance costs and re-direct headcount to core business areas. A total alignment of IT and business strategy is a win-win for any company meeting compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). ." About Active Reasoning Active Reasoning develops IT compliance software that audits peoples' activities within the enterprise data center. By automating the process of monitoring, validating, and controlling changes to the IT infrastructure, Active Reasoning simplifies ongoing compliance requirements and strengthens IT operations. Fortune 1000 companies across a broad set of industries currently use Active Reasoning software to more effectively meet compliance demands. Active Reasoning is a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , founded in 2002 and headquartered in Palo Alto, Calif. For more information, visit the company's website at www.activereasoning.com or call 650-404-9900. About ArrowPath Venture Capital ArrowPath Venture Capital is dedicated to helping outstanding entrepreneurs build world-class technology companies. Managing approximately $400 million provided by institutional and corporate investors, ArrowPath Venture Capital combines the best of traditional venture capital with corporate sponsorship in order to add the greatest value to portfolio companies. ArrowPath focuses on infrastructure-related technologies that provide next generation efficiency, enterprise-level fault tolerance See fault tolerant. (architecture) fault tolerance - 1. The ability of a system or component to continue normal operation despite the presence of hardware or software faults. This often involves some degree of redundancy. 2. and scale optimization, particularly for companies in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. market. These technology areas include enterprise software, network security, data and storage networking, web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. and other data-center technologies. For more information, please visit www.arrowpathvc.com. About ComVentures ComVentures, a venture capital firm with more than $1 billion under management, specializes in early-stage investments in the communications market. ComVentures focuses their investment expertise on pioneering, progressive companies that capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the constant drive to build next generation equipment, software, and services for enterprises and carriers. For more detailed information, visit us at www.comventures.com. About InterWest Partners InterWest Partners (www.interwest.com), founded in 1979, is a leading diversified venture capital firm focused on building long-term relationships with entrepreneurs and portfolio companies. With more than $2 billion of capital raised, including its new investment fund of $600 million, InterWest has 11 experienced partners in Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , CA, and Dallas, TX, who bring together deep domain knowledge in life sciences and information technology. About ONSET Ventures ONSET Ventures, founded in 1984, is an early-stage venture capital firm that combines start-up capital, business building skills and a long-term commitment to help entrepreneurs build and grow world-class companies. With more than $500 million under management, ONSET Ventures invests in information and medical technology companies. ONSET Ventures is headquartered in Menlo Park, California Menlo Park is a city in San Mateo County, California in the United States of America. It is located at latitude 37°29' North, longitude 122°9' East. Menlo Park had 30,785 inhabitants as of the 2000 U.S. Census. , and is on the Web at www.onset.com. |
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