Tuesday, July 29, 2008

Security tester Veracode gets CIA venture backing

By Mass High Tech Staff

Security testing company Veracode Inc. has reported a financing agreement with investment firm In-Q-Tel that will allow Veracode grow its subscription-based application security solutions. In-Q-Tel is the venture arm of the Central Intelligence Agency.

Veracode’s security threat detection service, called SecurityReview, can find security holes from SQL injection, cross-site scripting, malicious code and buffer overflows using its static binary testing technology and never accessing a company’s source code.

Financial terms of the agreement were not disclosed.

In April, In-Q-Tel invested an undisclosed amount in Watertown-based QD Vision Inc., which is using quantum dot and nanoscale technologies to create clearer, brighter and more efficient display screens. Officials said the investment is one of several from government agencies over the past year that have brought in $5 million.

Burlington-based Veracode launched in January 2007 with $19.5 million in venture capital. Key investors include Boston-based .406 Ventures Management LLC, and Waltham’s Atlas Venture and Polaris Venture Partners. Corporate investors include Symantec Corp. and Macrovision Corp., both based in California, Veracode officials said.