Palamida Secures Venture Funding from Top-Tier Silicon Valley Venture Firms

Business Wire, Feb 15, 2005

SAN FRANCISCO -- Hummer Winblad and WaldenVC Lead Series A to Fund First Comprehensive Software Intellectual Property Management System

Palamida announced today that it has secured $5 million in Series A funding from Hummer Winblad Venture Partners and WaldenVC. These funds will be used to accelerate Palamida's already rapid growth.

Palamida has developed the first comprehensive product to ensure that companies accurately control their software intellectual property (IP) assets. Palamida already has Fortune 500 corporations using its system.

Whether software applications are core to a company's product offering or integral to its infrastructure, they comprise a major percentage of many companies' market value. And since so many companies now introduce third-party software components into their IP base, company leaders are scrambling for information about what they really own -- and who they really owe. Corporate oversight is playing catch-up to this revolution in software development -- just as new legal requirements such as Sarbanes-Oxley require corporate officers to certify that controls are in place to prevent fraud.

Confusion around licensing obligations and how and where third-party code is being used inside a company's IP base can be expensive. Different components and licenses carry different licensing commitments governing usage, re-distribution, and royalties that place binding obligations on the companies that use them.

Palamida solves these problems by automatically detecting, managing, and reporting on third-party commercial and open source software components and licenses. In fact, it already has Fortune 500 corporations using its system. (In a separate release, Palamida today announced the availability of its Palamida IP Amplifier v3.0 software.)

According to Arthur R. Miller, Bruce Bromley Professor of Law at Harvard Law School and a world-renowned expert on intellectual property, "The problem that Palamida is addressing is an issue that no company can afford to ignore. Today, companies are running systems that do not track copyright and intellectual property restrictions. It is only a matter of time until they come under scrutiny and the risk of potentially expensive litigation arises."

"Palamida is working to resolve some of the most critical problems facing software manufacturers and enterprise-level software users," said Michael Poplack, Associate General Counsel of Oracle Corporation. "These companies are devoting increasing resources to the security of their systems and the protection of their intellectual property rights. Understanding the use and application of open source and commercial code in a company's software products and systems is a fundamental future challenge for these businesses."

Speaking for the investor group, Mitchell Kertzman, a Partner at Hummer Winblad Venture Partners, observed, "This is a major problem that every company needs to address. As a firm that has focused exclusively on software since our founding in 1989, we know what a big problem this is for any company that relies on software."

Added Matt Miller, a General Partner at WaldenVC, "We understand that one of the most valuable assets companies have is the intellectual property held in their software products and mission-critical applications. Consequently, we are not surprised that Palamida has been able to attract so many top-tier customers so quickly."

About Palamida, Inc.

Based in San Francisco, CA, Palamida is a pioneer in helping corporations manage third-party and open source software components. The company's investors include Hummer Winblad Venture Partners, WaldenVC, and Stanford University. Palamida's customers include Fortune 500 corporations, independent software vendors, and systems integrators. For more information, please visit www.palamida.com.

About Hummer Winblad Venture Partners

Hummer Winblad Venture Partners was created in 1989 as the first venture capital firm focused exclusively on software. As the software industry grew from PC software to enterprise computing to internet applications, Hummer Winblad has been at the forefront -- funding the entrepreneurs and ideas that helped define these markets. The firm's goal is to provide the capital, experience, and vision that will enable its companies to become leaders in the new software economy. For more information on Hummer Winblad, visit www.humwin.com.

About WaldenVC

WaldenVC is a venture capital firm that focuses on investments in digital media companies. Additional focus areas include software as a service and information services. With over $400 million under management, WaldenVC invests across all stages of growth, from startups to public corporations. Leveraging its operating experience, corporate investors, investment banking expertise and worldwide network, WaldenVC has consistently generated above-average returns over its thirty-one year history. Additional information can be found at www.waldenvc.com.