NUREMBERG, Germany Coverity Inc. has raised its first round of external funding with a $22 million investment by Foundation Capital and Benchmark Capital. The company has seen five consecutive years of positive cash flow growth and also grew in Europe by 300 percent in 2007.
Coverity (San Francisco, Calif.) will use this round of investment for acquisitions, internal product development, and further expansion into international markets.
The company says its Prevent static analysis solution is now used by hundreds of thousands of developers, as adoption of the product has more than tripled globally over the past 2 years.
The company’s expanded product portfolio will allow Coverity to establish a new presence in targeted segments of the market for application lifecycle management tools, a sector which Gartner has predicted will grow in European to more than $2.9 billion in 2011. Steve Machernis, European managing director at Coverity said, “Coverity is hiring aggressively throughout Europe while cultivating our network of partners.”
Following the fundraising Coverity has augmented its board of directors by adding Tony Zingale, who was formerly president and CEO of Mercury Interactive; Aki Fujimura, who is currently chairman/CEO of D2S and formerly was CTO of Cadence Design Systems; Bruce Dunlevie of Benchmark Capital; Paul Holland of Foundation Capital; and Mike Schuh of Foundation Capital who was formerly CEO at Intrinsa, and vice president of sales at Clarify and Cadence Design Systems.