Betting that a need for heightened data security will lead to increased demand for authentication technology, investors last week injected $16 million into BioNetrix Systems. Originally a maker of biological security technology that uses iris patterns or fingerprint identification to permit entry to IT networks, the company also offers software that lets businesses control internal and Web access to applications, transactions, and data from a single location.

The software combines biometric hardware with password and location-sensitive security tools. BioNetrix's previous backer, Columbia Capital, led this round of funding, joined by Advanta Growth Capital and NextLevel Venture Partners.

Also last week, ActivCard, a developer of smart-card, electronic-certification, and digital-identity technology, said it has paid $15 million to acquire Authentic8 International, a privately held Melbourne, Australia, company that makes authentication technology.

A report last week from the Meta Group emphasized the importance of authentication and other security technology. It warned of a possible new wave of terrorist attacks in the form of electronic intrusions that would attempt to damage financial and business markets in the United States.