Private Equity Firm, Adams Street Partners Lead $10 Million Investment in Series C Funding Round for LogRhythm to Finance the Company’s Rapid Growth

Based in Boulder, Colorado, the log data company, LogRhythm has announced on March 30, 2011, that it has raised $10 million in series C funding with Adams Street Partners leading the funding round. Other investors who participated in this funding round include the company’s existing investors, Access Venture Partners, Colorado Fund I, Croghan Investments, and Grotech Ventures. Proceeds from this funding round will be used to fund the company’s expansion and growth, this has seen record-breaking numbers.

LogRhythm is a major player in the log management industry. The company manages a service known as SIEM 2.0, which not only delivers an effective log data management system that businesses can use, but also a complex and effective security system that allows businesses to protect its log data in several layers. These layers of security in the SIEM 2.0 include an entire security event management. This security event management incorporates file integrity monitoring together with user monitoring under one single umbrella. The products and services that LogRhythm provides its clients empowers them to perform a number of important functions for their networks. These functions include compliance with their regulations, security of their networks, and optimization of their entire IT infrastructures.

One of the tokens of the company’s monumental business achievements include being awarded a place in the 2010 Red Herring Top 100 Award, and the SC Magazine’s Innovator of the Year Award. The company has won even more awards then mentioned in this article. Furthermore, with the constant presence of new cyber threats and other pitfalls that can plague IT networks, the products and services that LogRhythm offers meets many unmet needs that companies have to secure their sensitive and network data.

One of the major items that LogRhythm has that makes it so attractive to its customers is that its system has all the security and log data management incorporated in one system, streamlining the whole data management and network security under one system, thus reducing IT costs. One of the key factors in many business concerns of enterprises and corporations is that valuable information can be gleaned from analyzing log data. If the wrong people analyze a company’s log data, they could gather sensitive data that could ruin a company in many areas of business functions. The most devastating damage can be corporate espionage, which is typically done by stealing sensitive information that contains trade secrets.

The ability of both managing log data and monitoring users can allow the customer to monitor who is accessing company data and give the customer more tools to prevent sensitive corporate information from falling into the wrong hands. Furthermore, the event management that comes with LogRhythm’s system allows customers to monitor every event from all users to enforce compliance to network regulations.

One of the most unique and important aspects of the network and user monitoring is that LogRhythm has to offer is that its monitoring system is endpoint to endpoint to check if authorized users or unauthorized users are on the network. The user and network monitoring system is even able to eject USB devices to prevent an intruder from downloading sensitive information from the network onto a removable hard drive or other portable storage device. There are many other services incorporated in the SIEM 2.0 system.

According to the CEO of LogRhythm, Andy Grolnick, SIEM has become a central focal point for both security, monitoring, and compliance, in effect killing three birds with one stone. By having network and user monitoring, network security, and regulation compliance in one system, this definitely centralizes the entire nervous system of a company’s entire IT network. The SIEM 2.0 solution provides company’s with a profound visibility across the entire distributed IT network, thus allowing companies to pinpoint potentially serious problems that can later lead to serious data breaches as well as audit violations and noncompliance of regulations, including down time, should that happen. Mr. Grolnick further added that with the pattern recognition that SIEM 2.0 offers is only the tip of the iceberg of all the other potential that LogRhythm’s platform has for clients.

Other great words also came from LogRhythm’s investors, who include David Welsh, who is a partner with Adams Street Partners. Mr. Welsh stated that the team at Adams Street Partners looks for companies who are rising stars in the market and offer disruptive technologies which are in high growth markets. After researching all of LogRhythm’s credentials, the team decided that the company meets all the investment criteria that Adams Street Partners requires for investments. Mr. Welsh further added that after consulting with his partners at Adams Street Partners, he believes that LogRhythm is definitely poised to take the lead in the emerging SIEM market and stated that he and his team are looking forward to helping the company achieve a solid leadership position in this emerging industry.

Having been around for close to 40 years, Adams Street Partners is a large private equity firm which has its headquarters in Chicago, Illinois and has gained extensive experience in making successful investments in prosperous companies. The firm has a global presence and has deep confidence from all of its clients by having deep understanding in the global private equity market. Besides its main offices in Chicago, Adams Street Partners also has offices in Menlo Park, California, London, England, and Singapore. Portfolio companies of Adams Street Partners are not disclosed to the public.