Napatech Receives $5 Million Venture Capital Funding

Mar 24, 2006, 00:00 ET from Napatech

    COPENHAGEN, Denmark and MOUNTAIN VIEW, Calif., March 24 /PRNewswire/ --
 Napatech today announced the investment of $5 million from Ferd Venture,
 Northzone Ventures and DTU Innovation. Napatech is the leader in programmable
 high speed Ethernet network adapters. The investment coincides with Napatech's
 acquisition of the network adapter business of storage solution leader
     "We are very pleased with the confidence in Napatech's business
 opportunity shown by the investors, and I in particular welcome the new
 investor Ferd Venture," says Henrik Brill Jensen, CEO, "The funding enables us
 specifically to acquire the adapter business of Xyratex and to react
 effectively to the demand we experience in the market."
     Napatech's solutions enable OEM customers to scale network monitoring
 appliances, traffic analysers and recorders, testers and security products to
 the rapidly growing Ethernet speeds and traffic load. The solutions enable
 many applications by off-loading CPU/memory and bus architectures.
     "The network traffic is growing at a pace three times faster than the CPU
 capacity. As more companies move to gigabit networks there will be an
 increasing need for programmable network adapters to offload the CPU and
 Napatech is a strong company in this market," says Bjorn Erik Reinseth,
 partner in Ferd Venture.
     "This dual transaction solidifies Napatech's position in the market to the
 great advantage of the customers," says Gregers Kronborg, general partner in
 Northzone Ventures, "The strategy to specialize in programmable network
 adapter platforms that supports a multitude of OEM customers is being widely
 accepted and leveraged."
     Napatech's product portfolio includes a 1Gb and a 10Gb platform that offer
 solutions for network management, traffic analysis and recording, security
 applications and a toolbox enabling customers to implement their own
 proprietary intellectual property on the network adapter.
     The round was led by Ferd Venture. As Nordic early stage ICT investors
 Ferd Venture and existing investor Northzone Ventures put emphasis on working
 closely with the founders and management to develop the company. The existing
 investor DTU Innovation, which is a fund related to the Danish Technical
 University, also participated in the round.
     Private investor, and formerly co-founder and COO of the Danish public
 networking company Olicom, Kurt Nybroe-Nielsen will continue as chairman of
 Napatech. Bjorn Erik Reinseth from Ferd Ventures will join the board. Gregers
 Kronborg, formerly co-founder of Danish cable broadband start-up COCOM that
 was acquired by Cisco in 1999, continues on the board as vice-chairman. Also
 continuing on the board is co-founder and CTO of Napatech Jens Christophersen,
 formerly lead architect with COCOM and Cisco. Finally, Erik Norup, former
 director of marketing in Cisco will continue to serve on the board of
     About Napatech
     Founded in 2003, Napatech produces programmable and intelligent Ethernet
 adapters. The core idea is off-loading real-time/streaming traffic and payload
 analysis and control applications traditionally implemented in software or
 proprietary hardware. Napatech expects a huge growth in the demand for
 intelligent and programmable adapters as Ethernet speeds increase. The current
 PC architecture limits the amount of bandwidth that can be handled by the PCI
 bus and CPU/memory. Napatech offers its products to OEM customers. Napatech
 has marketing and R&D offices in Mountain View, California and Copenhagen,
 Denmark. Napatech is a 2004 Tornado100 Winner. Napatech is funded by Northzone
 Ventures, Ferd Venture, DTU-Innovation and a group of business angels with
 vast experience within networking.
     About Ferd Venture
     Ferd Venture is part of Ferd, which is one of Norway's leading investment
 companies. Ferd Venture primarily invests in Nordic technology-based companies
 that are seeking capital for further commercialisation and growth, and which
 have the potential to sustain long-term competitive market advantage. Ferd
 Venture has a team of 6 investment professionals based out of offices in Oslo,
 and has significant capital reserves available for new investments. The
 current portfolio consist of 10 companies including Affitech, Bone Support,
 Cinevation, Colibria, Forbrukerforsikring, Genkey, Marical, Mohive, Nacre and
     For further information, please visit
     About Northzone
     Northzone Ventures, the venture capital management company, was
 established in 1996. Northzone Ventures has a team of 10 people and offices in
 Copenhagen, Stockholm and Oslo. Northzone is actively engaged in about 20
 Scandinavian technology companies. Current and past portfolio companies
 include Pricerunner, Asetek, Enigma Semiconductor, Speakanet, Funcom,, Mamut, Nextgentel, Stepstone and Trolltech.
     For further information, please visit
     About DTU Innovation
     DTU Innovation is a pre-seed venture company. DTU Innovation has 100 MDKK
 under management. The funds are partly government money and partly venture
 money from a group of the largest Danish companies.
     For further information, please visit
     For additional information please contact:
     Copenhagen, Denmark, Europe         Ferd Venture, Norway
     Henrik Brill Jensen, CEO            Bjorn Erik Reinseth, Partner
     +45 4596 1500                       +47 990 22 000          
                                         Northzone Ventures, Denmark
                                         Gregers Kronborg, General Partner
                                         +45 70 222 475
     (C) 2006 Napatech all rights reserved. Napatech is a trademark used under
 license by Napatech A/S. All other logos, brand names and product names are
 trademarks of their respective companies.
     This release was issued on behalf of the above organization by
 Send2Press(R), a unit of Neotrope(R).

SOURCE Napatech