Imprivata Says Open Sesame to $15M Third Round
Imprivata, the Lexington, MA-based maker of software and appliances for managing password-based access to corporate computer networks, said today that it has closed a $15 million series C investment round, bringing its total venture backing to nearly $50 million.
SAP Ventures, the venture capital wing of German business software giant SAP AG, led the round, which was joined by existing Imprivata investors Polaris Venture Partners, General Catalyst Partners, and Highland Capital Partners. The company said it will use the infusion to expand into new markets.
When we profiled Imprivata last November, the company was in the midst of integrating its “single sign-on” systems—which allow corporate employees to use a single password to access all corporate software applications—with physical access control networks such as the RFID badge systems that regulate access to areas of many corporate campuses. That work has continued; the company’s system can stop an employee from logging onto a computer network from an office in Boston, for example, if it knows that the employee is already badged into branch office in New York. Meanwhile, Imprivata’s single sign-on technology has continued to catch on at many companies, especially in the healthcare industry, where government privacy requirements mean that electronic medical records systems must be heavily password-protected.
“Imprivata’s innovative approach to enterprise single sign-on and authentication management coupled with its unique integration to physical access control systems is helping companies worldwide address compliance and insider security threats,” said SAP Ventures partner Jennifer Scholze in the company’s announcement of the funding round. “The company has established dominant footholds in sectors such as healthcare, government and financial services and is poised to emerge as the independent vendor of choice. SAP Ventures is excited to be part of enabling its success.”