Coming back to the table for seconds, Sunnyvale, CA-based Palo Alto Networks heaped on another $10 million to their latest round (total of about $37 million) last week bringing their total VC take to around $64 million. This latest addition comes on top of the $27 million they raised back in August [coverage here] that we thought was a large number considering the way markets were headed, especially for such a late comer to the firewall party. It seems others thought differently.
This addition to the 3rd round included those firms originally shut out, specifically JAFCO Ventures , Japan Asia Investment Co. and Northgate Capital. What is interesting to note is that two of the three firms represent foreign-based investments. This is a sentiment that is being echoed in the Valley and elsewhere as firms are searching for fresh cash. Most recently in the rumor mill was Facebook, who it is said is searching for funding in the Middle East.
Lane Bess, despite just a few months on the job (he was hired back in July, shortly before they closed their B round) is showing he is a decisive character. Citing the fact that some customers have delayed orders Bess has said that there have been no outright cancellations. that’s a good thing too, since despite a flurry of layoffs, Palo Alto Networks plans to expand their headcount by 20% over next year. So far, our inquiries into how this money will be deployed and where the staff increase will go have not been returned, but we did hear that the intention is not to focus efforts on product engineering, but instead to direct the new resources toward gaining ground in the market through good old fashioned sales and marketing.
