KoolSpan Secures $6.5 million Series B
Bethesda, Maryland, December 11, 2006
In addition to numerous security and wireless industry awards and sales achievements, Koolspan recently closed a $6.5 million round of financing, led by security industry veteran Elad Yoran of Security Growth Partners www.securitygrowth.com. Elad Yoran and his brother, Amit Yoran, were co-founders of Riptech, which they sold to Symantec for $145mm in 2002. Amit Yoran also served as CEO of In-Q-Tel, the venture capital arm of the CIA. Joining this round were previous investors: TWJ Capital, the New York Angels, The Supper Club, the Maryland Department of Business and Economic Development (DBED) and the Maryland Technology Development Corporation (TEDCO). The addition of Elad Yoran and Security Growth Partners is a substantial endorsement of Koolspan’s potential and an influential resource in the security industry.
Nobska’s investment in Koolspan was made by the partners of merchant banking/strategy consulting firm Nobska Group in late 2003. The investment was made prior to the formation of Nobska Venture Partners I, L.P., (NVP I) our firm’s current venture capital fund. After making its investment, Nobska Group was instrumental in achieving validation of Koolspan’s technology and potential through Nobska’s contacts at the National Security Agency, leading to additional funding from DBED, TEDCO, and other government programs, and subsequently additional financing from angel and institutional investors. Koolspan has advanced beyond the investment stage that is the focus of Nobska Ventures and though we have not participated in recent financings, Nobska’s aggregate return (cash and equity) from our interest in Koolspan has nonetheless been highly attractive.