Austin-based SignaCert secures $4 million line of credit for growth

Jan 13, 2015
Austin American Statesman

Austin-based SignaCert Inc. has secured a line of credit for up to $4 million as it makes a sales and marketing push for its security software.

Fortress Investment Group provided the credit which is backed by a portion of SignaCert’s intellectual property portfolio

SignaCert was founded in Portland in 2004 and acquired by Florida-based Harris Corp in 2010. In 2012, Harris sold its technology security-related patents and software to Austin software industry veteran Toney Jennings

Jennings said SignaCert takes a different approach to monitoring and detecting security issues in a computer network. Today, IT departments often perform costly manual audits to ensure that their systems are compliant and look for breaches or viruses, he said

SignaCert continuously monitors customers’ systems using a database that can immediately identify unauthorized changes

“The folks that have been breached lately are the types of folks that are coming to us, and they’re the customers we’re seeking,” Jennings said. “The nice thing about this is, when we tell our story, they immediately get it”

Jennings was previously CEO of Austin-based Fastfan, which ran a social game and digital marketplace. Prior to that, he was CEO of CoreTrace Corp., an Austin software company that was acquired in 2012 by Arizona-based Lumension Security for an undisclosed amount

SignaCert is targeting customers in the retail, healthcare, financial services and government sectors and has a dozen clients

Jennings said the advantage of a line of credit is that it will allow SignaCert to expand without giving up ownership

“We have a product that’s proven and ready to go, so we didn’t need to go out and raise $8 million for development,” he said. “This is non-dilutive. Of course, you also have to pay it back”

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