Monday, August 4, 2008

InstallFree finds $8.5M in second funding round

By Mass High Tech Staff

Desktop virtualization software maker InstallFree Inc. reports that it has received $8.5 million in Series B financing.

Stamford, Conn.-based InstallFree said the funding was led by two Bellevue, Wash.-based venture capital firms, Ignition Partners and Trilogy Equity Partners. The company plans to use the financing to expand its product development.

As part of the deal, Ignition Partners investors Richard Fade and Trilogy Equity Partners investors John Connors, Peter van Oppen and Chuck Stonecipher will join InstallFree’s board of directors, officials said.

InstallFree, founded in mid-2006, employs 14 workers — 10 in Israel and four in the United States. Target markets include financial services, insurance and pharmaceutical industries.

The financing follows a $1.7 million round of funding closed in January primarily from U.S.-based angel investors. InstallFree launched its first product in April.

Last year, New York research firm The 451 Group reported that desktop and application virtualization generated $1.5 billion in merger-and-acquisition activity during the previous 24 months. The firm projects increased activity this year as well.

Local companies developing virtualization tech include Littleton-based Marathon Technologies Corp., which develops software that mirrors data-center servers to prevent data loss. In Lowell, Virtual Iron Software Inc. is competing with market leader VMware Inc. by undercutting VMware’s price.