Xangati Raises $10.7 Million in Series B Funding

Business Wire, Sept 24, 2007

New Investor Walden International Leads Round, Partner Joins Board

CUPERTINO, Calif. -- Xangati, the provider of the industry's first rapid problem identification (RPI) appliances for enterprise networks, announced today that it has closed its Series B funding round, bringing its total funding to date to approximately $18 million. The round was led by Walden International and was joined by existing investor Alloy Ventures. The funds will be used to expand the engineering team to optimize product development and to grow its marketing and sales groups to increase market penetration.

Xangati also announced that Mary Coleman, managing director at Walden International, will take a seat on the company's board.

"The team at Walden International saw an exceptional opportunity in Xangati," said Coleman. "Rapid problem identification is a powerful tool that provides organizations with a solution to a screaming operational need in IT organizations, and we see Xangati as the leader in this market."

John Shoch, a general partner at Alloy Ventures, continues to be enthusiastic about Xangati's prospects. "Alloy Ventures has been pleased with Xangati's product development and its growing number of customer installations," said Shoch. "Xangati's executive and engineering team is extremely impressive, and we believe the company will continue to drive innovation in its market space."

Xangati's rapid problem identification solution shrinks the time between the genesis of a problem on an enterprise network and the identification of its source through the precision profiling of every endpoint and application. Traditional silo-specific solutions require IT personnel to spend several hours or even days searching for the core problem. The Xangati solution often identifies the problem before end users are even aware that a problem exists.

"This is a significant milestone for Xangati," said Alan Robin, CEO of Xangati. "Walden International has a great understanding of the industry, and its high level of excitement about Xangati further validates that our rapid problem identification solution delivers a differentiable approach to a large operational problem for IT."

About Xangati

Xangati's rapid problem identification technology enables IT organizations to be the first to respond to application and network performance problems and ensures high productivity across the enterprise. The privately held company is headquartered in Cupertino, California. For more information, visit the company website at www.xangati.com.