Platform Logic Inc., a year-old start-up based in Glenwood, Md., that is developing network security software, plans to announce a $3 million first round of funding today as it continues product development.
Walker Ventures, a venture capital firm also based in Glenwood, led the round with additional backing from the Maryland Department of Business and Economic Development and individual investors.
Platform Logic was founded in February 2002. It develops software to help control which programs are allowed to access a computer. For instance, if a user sends a file to a printer from a word processor, the software ensures that the word processor tries to access only the printer, preventing unauthorized operations.
"It's the kind of thing Microsoft should have done originally but didn't," said Steve Walker of Walker Ventures. "Now these guys are coming up with ways to do it."
Walker, along with Gina Dubbe, another partner at Walker Ventures, is joining Platform Logic's board of directors.
Platform Logic is testing the first version of its security software and hopes to have a final version ready for distribution next month. This round of funding will help pay for development costs as well as sales and marketing operations.
Like most investments in this funding climate, raising the money was not easy.
"The experience has been challenging," said Homayoon Tajalli, Platform Logic's president and chief executive. "The days of a company having a good idea and having a lot of funds thrown at them are gone."
The $3 million investment should fund the company for six to nine months, Tajalli said.
"The next round would more than likely be a larger round," he said. "The company is poised to become profitable in early 2004."