Betting that security software providers also provide secure investments, Dell Computer, Fidelity Ventures, and First Union eVentures Group are among the backers who have pumped $30 million into a second round of funding for Sanctum Inc., which makes security applications and Web-software monitoring tools.
Sanctum offers two core products: AppScan, which seeks out and test spots in Web apps for hacker vulnerability, and AppShield, a Web-application firewall that monitors behavior to ensure site visitors are complying with pre-established business rules. Both products are customized for key verticals at high risk for security breaches, including financial services and media.
Forrester Research predicts that spending on computer security will reach $19.7 billion by 2004, up from $5.7 billion today. But investors should also feel safe, says CEO Peggy Weigle, because by continuing an international expansion effort, Sanctum should be profitable by the second quarter of 2002.