The News

Qosmos Finalizes €7 Million Financing Deal Innovator in Advanced DPI Technology Accelerates Growth

13/05/2008

ParisMay 13, 2008-Qosmos, the industry leader in information extraction solutions based on advanced Deep Packet Inspection (DPI) technology, announced today that is has successfully closed a third round of fundraising worth €7 million (US.8 million). The funding, led by Sofinnova Partners, Alven Capital, and GfK AG, will accelerate Qosmos’ delivery of the next generation of DPI technology and enable the company’s international expansion.

Qosmos provides software modules and appliances that detect and extract business-critical information from IP networks in real time. Qosmos’ patented ixDPI technology extends the capabilities of traditional Deep Packet Inspection and enables customers to not only monitor – but monetize – the information traveling over networks. Qosmos technology has already been deployed by network service providers, systems integrators and software vendors who have created a wide variety of value-added services and applications, such as digital home audience measurement, carriers’ services usage analysis, customer experience management, flow monitoring and optimization, content-based billing and data leakage prevention.

The funding will fuel Qosmos’ product development and accelerate the execution of its product and business strategies. On the product side, Qosmos will further invest in technologies that monitor the emergence of new protocols and new IP applications on an ongoing basis, and capitalize on high-speed and multi-core network processor technologies that match the scale of Qosmos’ solutions. On the business side, the company plans to expand operations to the US and Asia and increase its staff.

“The continued investment from Sofinnova Partners and the equity participation of Alven Capital and GfK AG underscore the relevance of our strategy and the solid growth potential of our solutions in the market of real-time extraction of business-critical information from networks, which will create an ever-increasing number of value-added applications for our customers,” said Thibaut Bechetoille, CEO of Qosmos. “This financing allows us to invest in the people and technologies that strengthen our position as a leader in the European market, as well as boost our presence worldwide,”

Sofinnova Partners, an independent venture capital firm focused on technology and life sciences companies, was an initial investor in Qosmos. Alain Rodermann, Partner at Sofinnova Partners stated, “There is increasing importance in issues related to IP network monitoring and surveillance, and this fundraising deal will allow Qosmos to corner a large share of the Deep Packet Inspection market.”

Nicolas Celier, Partner at Alven Capital, a private equity firm, explained, “Data analysis and protection have become fundamental challenges with respect to the internet. Alven Capital, which is very familiar with the web-based services industry, was impressed by the value of Qosmos’ offering, the talent of its management team, and its ability to achieve its growth potential.”

The GfK Group is one of the largest market research companies in the world, delivering knowledge to clients in retail, media and services sector “Qosmos technologies are making a substantial contribution to the internet economy. The company’s ixDPI solutions are a truly groundbreaking innovation that have provided our industry with the key ability to deliver accurate, reliable, and comprehensive statistics in real time,” stated Gérard Hermet, Member of the Management Board of GfK AG and President of the Retail and Technology Division.

About Qosmos
Qosmos is the industry leader in Information Extraction and Deep Packet Inspection (ixDPI) technologies. The company’s products, composed of software modules and appliances, enable real-time detection and extraction of business-critical information traveling over IP networks. Based on unique patented ixDPI technology, they recognize and classify IP protocols and applications, and extract valuable content from information flows with unrivalled accuracy and reliability, providing in-depth network analysis and enabling the creation of higher value business applications. Qosmos customers include network equipment manufacturers, software and solution vendors, and system integrators seeking to improve their product offering or create innovative solutions and systems through Information Extraction and DPI features; market research firms measuring digital content flows; and service providers managing Service Level Agreements (SLAs).

Established in 2000 by members of the prestigious LIP6 Computer Research Laboratory in Paris, Qosmos is backed by Sofinnova Partners. In 2007, Qosmos received Deloitte Technology Fast50 France and Fast500 EMEA awards, as well as the IEC InfoVision Award.

About Sofinnova Partners
Founded in Paris in 1972, Sofinnova Partners is one of Europe’s leading independent venture capital firms. With 900M€ under management, Sofinnova Partners invests in early stage companies and corporate spin-offs in the technology and life sciences sectors – companies that have the potential to become tomorrow’s global leaders. We have supported entrepreneurs in over 460 ventures throughout Europe and the United States, putting our expertise and international experience to work on their behalf. The companies in our portfolio also benefit from our collaborative relationships with an international syndicate of co-investors, including Sofinnova Ventures, our sister firm in San Francisco.

About Alven Capital
Alven Capital is an independent venture capital fund that manages €150M, primarily on behalf of institutional investors. Alven Capital holds interests in companies that have exhibited strong growth in the media, service, and IT industries. The company has already invested in more than 30 companies in Europe, including Webhelp, SeLoger.com, Newsweb, Companeo, Wanimo, Metaboli, MyFab.com, Splendia and Prowebce.

About GfK Group
The GfK Group is the No.5 Market research organization worldwide. Its activities cover the three business sectors of custom research, retail and technology and media. The GfK Group achieved €1,162.1M in financial year 2007. The Group has 115 companies covering over 100 countries. Of a total of 9,070 employees (as of December 31, 2007), 81.1% are based outside Germany.