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Qosmos Closes Euro 19.8 Million Funding

2011-09-09
The round was co-led by leading European venture firm DFJ Esprit, Fonds Strategique d'Investissement (FSI) and Alven Capital.
PARIS, FRANCE, Qosmos, the leading provider of Network Intelligence (NI) technology, today announced the closing of a €19.8 Million (US $28.5 Million) financing. The round was co-led by leading European venture firm DFJ Esprit, Fonds Strategique d'Investissement (FSI) and Alven Capital.

The deal is a combination of primary equity and debt plus a secondary purchase of former investor Sofinnova's stake in the company by the three named companies. As new investors, Krishna Visvanathan, Partner of DFJ Esprit, and a representative from FSI will join Qosmos' board of directors.

The investment will support Qosmos' expansion in the North America and Asia-Pacific regions, fuel its product development and global marketing efforts, as well as fund potential acquisitions. Profitable since 2009, Qosmos revenues increased 40% in 2010.

Qosmos pioneered Network Intelligence (NI) technology based on next-generation Deep Packet Inspection (DPI). Its ixEngine product delivers visibility into data crossing wireless networks by identifying, extracting and querying specific information with unparalleled precision and detail. Such information is critical for communications, business and security applications, such as network traffic optimization, policy management, service assurance, market research and network and data security. Qosmos' customers are Network Equipment Providers, Software Vendors and Systems Integrators in the telecom, networking and cybersecurity markets who embed Qosmos NI technology to better manage, track and monetize the massive increases in business and consumer network data transactions.

Momentum for Qosmos is at an all-time high, with the company enjoying double-digit revenue growth for the last six years, earning numerous awards from leading business and technical organizations and establishing two new industry organizations in the last year-the Network Intelligence Alliance and the Qosmos Expert Developer Network. In addition, Qosmos CEO Thibaut Bechetoille has been named as a delegate to represent France at the G20 Young Entrepreneurs Summit (G20 YES) later this year.

Thibaut Bechetoille, President and CEO of Qosmos, said, "This investment is the result of the momentum the company has seen building over the last several years, and is tremendous validation of our horizontal component technology strategy, OEM business model and vision to become the leading independent "pure play" vendor of Network Intelligence technology. We look forward to working with our new partners as we accelerate the growth of the company internationally, meet demand for advanced DPI capabilities among solution and equipment providers and explore new use cases for Network Intelligence technology in the telecom, enterprise and cybersecurity markets."

Krishna Visvanathan, Partner at DFJ Esprit, commented, "We are excited to be investing in Qosmos, a world leader in Network Intelligence technology, and working with its seasoned management team. DFJ Esprit has had success of investing in the network intelligence space including security, optimization and application acceleration, and we see Qosmos as a great addition to our portfolio in this space. We look forward to helping Qosmos drive their expansion further in the US and Asia through the leverage we bring to bear from DFJ's global network of funds in both regions."

Jean d'Arthuys, Director and Member of the Executive Committee of FSI, said: "Qosmos has proven it has unique competencies and is a recognized leader in the network intelligence market. The goal of our investment is to give Qosmos the means to accelerate its business development and strengthen its technical leadership. We are also pleased to invest in a company that fits our own strategy to support French high-tech companies whose innovative technologies have global impact, and have a strong growth potential."

Nicolas Celier, Partner at Alven Capital, and a current board member of Qosmos, commented: "Now more than ever, networks are an essential part of our everyday lives. Qosmos' Network Intelligence technology not only makes them more efficient and useful, but it also ensures that networks are more secure and available to the people who rely on them. We are happy to increase significantly our investment in Qosmos at a time when this vital technology has an increasingly important role to play in the global network economy."

Olivier Sichel, Partner at Sofinnova Parters, former investor, said: "Sofinnova, who has backed Qosmos since July 2004, is impressed by the extraordinary business results achieved under the leadership of Thibaut Bechetoille and is pleased to hand over to prominent investors such as DFJ Esprit and FSI who will take Qosmos to the next stage of growth."

Qosmos' previous round of financing was in 2008, with investment from Alven Capital, GfK and others.

About Qosmos

Qosmos specializes in unique network intelligence technology that provides unprecedented visibility into data traffic. The company delivers software development kits and intelligent IP probes which recognize thousands of protocols and metadata attributes for the most accurate picture of real-time data activity on networks. Going beyond traditional Deep Packet Inspection (DPI) technology, Qosmos treats the network as a real-time database, able to identify, query and extract specific data with unparalleled precision and detail.

Qosmos products are used by Network Equipment Providers, Software Vendors and Systems Integrators to build next-generation solutions where real-time intelligence is critical, such as cyber security, lawful interception, traffic optimization, content billing, service assurance, market research and more. They enable applications, services and networks themselves to be more secure, efficient and profitable. www.qosmos.com

About DFJ Esprit

DFJ Esprit is a leading cross-stage venture capital firm that invests in European technology companies. Members of the DFJ Esprit team have been active in technology investing for three decades. They have experience of investing in over 200 companies, generating strong returns for investors through building valuable global companies alongside founders and management teams.

The DFJ Esprit partners have invested and helped build many of Europe's most successful venture companies of recent years, including Apatech, Buy.at, Icera, KVS, LOVEFiLM, CSR, Domantis and Zeus. DFJ Esprit is the exclusive European partner for Silicon Valley based Draper Fisher Jurvetson (DFJ) Global Network of venture funds. DFJ Esprit invests across Europe and has partners located in London, Cambridge, Dublin, Helsinki and Paris.

For more information, visit http://www.dfjesprit.com/home

About Alven Capital

Alven Capital is an independent venture capital firm that invests in high-potential technology, services and media companies. With over $210 million under management, Alven Capital has already invested in more than 40 companies in Europe, including Aquarelle, Liligo, Wanimo, Splendia, MonShowroom.com, MyFab.com, SeLoger.com, Webhelp, Newsweb, Companeo, Metaboli, Prowebce and Qosmos.

For more information, visit www.alvencapital.com

About Fonds Strategique d'Investissement

FSI: The Fonds Strategique d'Investissement (FSI) is a €20 billion sovereign wealth fund, hold at 51% by the Caisse des Depots and at 49% by the French state. FSI is an equity investor taking minority stakes in French companies of all sizes, both directly or through specialized funds. FSI's purpose is to invest wisely in selected growing companies that can strengthen the country's competitiveness.

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