Fortinet – Profile
HQ: Sunnyvale, CA
Management: Ken Xie is Founder, President and CEO. He previously was Founder, President and CEO of NetScreen (NASDAQ: NSCN), which was acquired by Juniper in 2004 for $4B. Additionally, he was Managing Partner of Jedi Venture, Founder, President and CEO of Stanford Infosystems, and Security Architect for Healtheon (NASDAQ: HLTH) and Philips.
Investors: In March 2004, Fortinet raised $50M in mezzanine funding. It has raised $93M to date. Investors are Redpoint Ventures, Meritech Capital, DEFTA Partners, and Acorn Campus.
Business Model: The company sells network security devices to prevent denial-of-service attacks and intrusion detection and prevention. Products are hardware-based firewalls with VPN support and intrusion detection. Its approach is to bake these capabilities into its own ASICs. Fortinet’s clients have been large, corporations, and now carriers and managed services providers. The company reportedly is doing brisk business and has the confidence to have a headcount of nearly 600 people already.
Competitors: Cisco, Netscreen (Juniper), and Checkpoint Software.
Dirt: Company execs have revealed that they are preparing for an IPO in 2005. According to W.R. Hambrecht & Co. “They have more revenue than any other privately held information-security startup and incredible traction in a number of different markets.”