CHICAGO 7/1/2008—Ceres Venture Fund, LP announces the sale of its portfolio company, Solidware Technologies, Inc. to San Francisco-based Coverity, Inc.
Coverity, the leader in automatically improving the quality and security of C, C++, C# and Java source code, has recently acquired Solidware. The company sought to capitalize on the technology developed by Solidware, which allows companies to objectively ensure the release-readiness of software by combining data from multiple quality and security tools, including Solidware's own unique analysis technology. By synthesizing information from multiple sources, managers can identify, prioritize and direct the repair of code branches that pose the greatest risk of failure or vulnerability. Shareholders in Solidware received cash as well as shares in Coverity.
"Coverity has always recognized that to deliver high integrity software, developers need multiple tools to help control the growing complexity in their source code," said Seth Hallem, CEO at Coverity. "The acquisition and eventual integration of technology from Solidware will give our customers a top down view of their applications as they make progress against release requirements. This unique perspective will help managers deploy their developers more effectively and bring greater predictability to the overall development process."
After five consecutive years of cash flow positive growth, during which Coverity was successfully bootstrapped by product sales, in early 2008, the company accepted its first round of outside funding. The $22 million round including Benchmark Capital and Foundation Capital is helping Coverity fuel international growth and broaden its product portfolio through both acquisition and internal development efforts.
"Technology from Solidware is an important part of our development process, because it gives us an objective way to measure our Java code quality from multiple perspectives" said Marjo Mercado, Vice President of Engineering at Xceedium, Inc. "Utilizing the release management capabilities in Solidware's technology is something we require of every Java developer prior to code check-in to ensure our quality standards are met." Solidware's technology collects analysis data from other development and test tools, synthesizes the results, and presents development teams with visibility into code complexity, violation of best practices, software architecture, interdependencies and test coverage. The combination of these metrics allows managers to assess the software readiness of their releases, in addition to providing visibility into code of unknown quality that may be outsourced, open sources, acquired or otherwise reused.
"Engineering managers and executives need comprehensive visibility into software readiness to ensure that code meets quality and security standards prior to release", said Sue Kunz, CEO of Solidware. "Because Coverity's static and dynamic analysis products understand software systems at such a deep level, the combination of results from those tools with Solidware's own analysis capabilities can deliver unique value to software development leaders."
Ceres Venture Fund, L.P. is dedicated to funding high growth businesses in the Midwest and focuses on investment opportunities in the information technology, healthcare and business services areas. Ceres' principals, Sona Wang, Donna Williamson, and Laura Pearl, have over 60 years of experience in venture capital and operating early stage companies and have collectively invested more than $130 million in capital. The partnership is one of the few venture funds focusing its efforts on young growing businesses in the Midwest. Ceres has a particular but non-exclusive interest in financing women-led companies. Ceres is based in Evanston, Illinois.