In a venture capital market many entrepreneurs have left for dead, local technology upstart Sarvega Inc. will announce today that it raised $10 million in fresh capital.
The second round of financing was led by InterWest, a prestigious VC firm based in Menlo Park, Calif., that bankrolled $4.8 million in the round; existing VCs invested the other $5.2 million.
Original investors in the three-year-old software company that also participated in the new round include Chicago-based KB Partners, New York-based Bessemer Venture Partners and Menlo Park- based ComVentures.
Sarvega, which means “universal” in Sanskrit, was founded in 2000 to take advantage of the demand for XML (Extensible Markup Language) intelligent routers that are used in companies and financial institutions to manage and process large and diverse forms of data.
Adoption of XML turned out to be slower than proponents anticipated, but Sarvega “focused on its product and value proposition to save companies money while improving efficiency of their operations,” said CEO Sunil Gaitonde.
CommWorks, a 3Com company, is a major, longstanding customer.
The new funds will be used to finance marketing plans and develop new products.
Darcy Evon writes a weekly column on local technology issues for the Sun-Times.
