Sypherlink Secures $3.5 Million Series B Round

Battelle Ventures, L.P., has increased its investment in information-management-software company Sypherlink, Inc. The fund, which led the Dublin, Ohio-based companys $3.5-million Series A round in 2005, participated in the $3.5-million Series B with new, lead investor Stuart Mill Venture Partners. Other existing investors Reservoir Venture Partners and Innovation Valley Partners, also participated in the round.

Sypherlink has made major strides since the first round, said Battelle Ventures General Partner Ralph Taylor-Smith. Theyve built out the technology, developed unique database mapping and aggregation software solutions, generated good revenue and established market traction, with solid customer and strategic relationships.

Taylor-Smith noted that the company has secured contracts and partnerships with federal and state government agencies, global 1,000 companies and the leading application and services firms serving those core markets, including the State of Florida Department of Law Enforcement (FDLE), D&B, Acxiom Corporation, Allen Systems Group (ASG), Battelle Memorial Institute and Unisys Corporation.

We are confident that the company will continue to generate excitement in both the government and commercial sectors, as software solutions based on its patented technologies for automated data mapping and virtualization continue to penetrate the marketplace, continued Taylor-Smith, who has joined the Sypherlink Board of Directors.

We are attracted to Sypherlink for its growth potential, said Larry Hough, general partner of Stuart Mill Venture Partners, who noted that Sypherlink is the debut deal of this new, $20-million fund based in Falls Church, Virginia.

We were immediately impressed with the companys value proposition particularly right now in the government sector, continued Hough, a former CEO of Sallie Mae. There is an urgent need and pent-up demand for faster, cost-cutting solutions to facilitate cross-agency and cross-jurisdictional data sharing and intelligence efforts, he said, and we believe that the company will soon reach a new market level even as it continues to innovate.

The funding will be used primarily to expand Sypherlinks market presence and customer base within two core markets government agencies that support integrated criminal justice and national security, and the global 1000 commercial business sector, said CEO James Paat.

Paat, a successful serial entrepreneur and recognized industry expert with more than 20 years of experience in e-business and data integration, noted that among the companys accomplishments is the creation of the first commercial-off-the-shelf technology solution to help federal and state agencies conform to national standards for data sharing and intelligence efforts.

The company, said Paat, also is penetrating the commercial sector, with a particular focus on marketing automated data mapping and rapid prototyping software tools to businesses in the financial services, insurance and medical services sectors.

This new infusion of capital will enable us to meet the demand for our products and services as we continue growing both our core markets, said Paat.

Sypherlink is an information-management-software company that intelligently links critical information across disparate data sources. Its two distinct patented technologies automate much of the data sharing and integration processes, providing both corporate and public sector organizations with faster, more cost-efficient ways to locate, manage and use information. Its core technology is a heuristics matching technology that automates the discovery and mapping of data. Its virtualization technology for rapid prototyping provides the capability to access multiple physical, disparate data sources from a single, virtual query. In 2007 the company created the first commercial-off-the-shelf technology solution to help federal and state agencies conform to national standards for data sharing and intelligence efforts. The company’s client/partner base includes the Florida Department of Law Enforcement, D&B, Acxiom Corporation, Unisys Corporation, IBM, ASG and Battelle.

For more information, please visit www.sypherlink.com