Quarry hauls in another $18 million

Quarry Technologies said it has closed a D round of funding, raising $18 million from both new and existing investors.

The round, which includes new investor Westbury Partners along with existing investors 3i US, Jerusalem Venture Partners, ARCH Venture Partners, Sofinnova Ventures and Walden International, should get the company to cash-flow positive, said Ian Mashiter, president and CEO of Quarry.

"We expect that this will be the last round of private equity funding," he said.

The $18 million will be earmarked for continued commercialization of Quarry’s security service router product line and support of additional features.

"As we’re involved in more and more customer situations, we’ve gotten more demands on engineering to add features," Mashiter said.

Additionally, the company is starting expand its geographic reach. Quarry, based in Burlington, Mass., has had its greatest success in Korea so far. However, the company recently opened a sales office in Japan and is starting to see some traction in the U.S. market as carriers begin responding to more frequent security threats.

"The overall environment is one in which the threats are becoming more sophisticated," Mashiter said. "If you look at service providers like Savvis, they’re building business cases based on provided secure services."

Bigger carriers have focused most of their efforts on building MPLS backbones but are starting to move into more sophisticated services that will require secured routers on the edge of the network, he added.

"The perimeter of the enterprise has broken down and that’s changed things," Mashiter said.