MX Logic Raises $11 Million in New Equity Financing
Denver, CO – MX Logic, Inc., a leading provider of innovative email defense solutions that ensure email protection and security for businesses, service providers, government organizations, resellers and their customers, today announced it has received $11 million in new funding.
The round was led by UV Partners with participation from River Cities Capital Funds as well as follow-on participation from existing investors Adams Street Partners, Grayhawk Venture Partners and Vista Ventures. This funding of MX Logic brings total financing to $18.5 million. MX Logic will use the capital to continue to enhance its solution suite, build out its channel partner program, fund global expansion and pursue strategic partnerships.
“We invest in companies which provide solutions that meet a demonstrated market need and have a track record of executing successfully on their vision,” said Carl Ledbetter, a partner at UV Partners. “MX Logic’s customer base and revenue has grown more than 900 percent over the last twelve months. The MX Logic leadership team has shown it can deliver innovative product offerings that relieve customers of the pain and costs associated with handling spam, viruses, worms and other email threats.”
Email security is a growing market, one that according to analysts will reach between $4 billion to $5 billion. Robust spam, virus and worm detection has become critical as the volume and costs associated with email threats continue to rise. Ferris Research estimates that in 2003, the total cost of spam to U.S. businesses in lost productivity was $10 billion. During the month of August, 92 percent of the email MX Logic filtered on behalf its over 2,800 customers was spam. Viruses and worm threats are also associated with devastating costs. SoBig.F damage estimates range from $500 million to more than $1 billion in lost productivity, hours wasted and lost sales.
“MX Logic is committed to delivering the most accurate, reliable and cost-effective email defense solutions available,” said John Street, CEO, MX Logic. “Our most recent round of funding will help us continue to deliver cutting-edge solutions, support our expanding customer base and continue to anticipate and exceed our customers’ needs.”
During 2004, MX Logic has achieved several industry milestones, including:
•Becomes the first email defense provider to offer corporate-level quarantine release reports that help reduce inappropriate email and decrease corporate liability
•Blocks MyDoom within minutes after its initial propagation and two hours before virus engines release their patches
•Blocks more than 25 million instances of MyDoom in the outbreak’s first week
•Announces the first managed service platform for service providers that allows carriers, ISPs, wireless operators and Web hosts the opportunity to turn their email threat cost center into a profit center
•Releases ClickProtect, the industry’s first solution for tracking click-throughs from email to the Web, enabling increased corporate control and security
•Adds reputation analysis and URL filtering to its patent-pending Stacked Classification Framework® spam detection system. With the addition of these two new classifiers, MX Logic delivers over 20 layers of industry-leading email defense.
Providing around-the-clock protection, MX Logic automatically intercepts, analyzes and blocks malicious and unsolicited messages before they can enter or leave the internal corporate network. MX Logic’s Email Defense solutions leverage the company’s unique Stacked Classification Framework—a multilayered spam detection system that combines the industry’s most powerful spam-fighting techniques, including reputation analysis and URL filtering, to block 98 percent of spam and achieve an industry leading false positive rate (legitimate email marked as spam).
MX Logic Email Defense solutions deliver over 20 layers of email defense which in addition to the Stacked Classification Framework spam detection system include anti-virus and worm engines, content and attachment filtering, allow and deny lists, and email attack protection. Each layer of defense has unique strengths designed to identify specific threats and the combination of more than 20 filtering techniques makes MX Logic’s email defense solutions the most accurate and comprehensive in the industry.
Powering MX Logic Email Defense solutions is the MX Logic Threat Center, a sophisticated streaming data environment where MX Logic monitors the global state of email communication, 24 hours a day, seven days a week, and provides MX Logic’s customers with real-time updates and protection. Led by email security experts with extensive experience in protecting messaging networks, the Threat Center provides dynamic email defense—staying far ahead of the next attack by continually incorporating information about the very latest spammer, virus and worm tactics.
About UV Partners
UV Partners, established in 1986, with offices in Salt Lake City and Los Angeles, is a leading early stage private equity investment group. UV Partners provides the foundation for the development of early-stage entrepreneurial concepts into tomorrow’s industry-leading Information Technology and Life Science companies. For more information, visit www.uven.com.
About MX Logic
MX Logic, Inc., provides innovative email defense solutions that ensure email protection and security for businesses, service providers, government organizations, and resellers and their customers. Deployed as a managed service or on-premise software, the company’s feature-rich solution suite is the industry’s most comprehensive, flexible and easy to use.
Founded by messaging industry pioneers, MX Logic has delivered numerous industry firsts to the enterprise spam market, including becoming the first managed service provider to: leverage Bayesian Statistical Classification; provide spam beacon (“Web bug”) blocking; offer quarantine management via email; provide corporate-level quarantine release reports that help reduce inappropriate email while decreasing corporate liability; and deliver a solution for tracking URL click-throughs from email to the Web, providing increased corporate control and security.
Through the company’s managed service offering, MX Logic processes millions of messages per day for over 2,800 organizations, including EnCana, Hyundai Motor America, Sports Authority, YMCA and ServiceMaster. In addition, MX Logic is the only email defense company to offer both a managed service and a turnkey, carrier-grade software solution for service providers. For more information, visit www.mxlogic.com.