Index Ventures leads $17m KVS round

The Geneva-based venture capital firm has teamed with US firm FTVentures to back a $17m series B financing of KVS, a UK email management business.

KVS, a UK-based content archiving and email management service provider, has raised $17m (£10.63m) in series B financing from a group of venture capitalists led by pan-European firm Index Ventures and FTVentures, the US financial technologies investor.

FTVentures is investing from its $423m venture capital which closed in January 2002. Index Ventures, based in Switzerland, closed Index Ventures II, a $300m fund, in July 2001.


Since launch in 2000, KVS has secured finance totalling $37m (£23m). Other KVS investors include Cazenove Private Equity, Greenaap Consultants, Lehman Brothers European Venture Capital and Mosaic Private Equity.


The funds will be used to drive the growth and expansion of the company’s global sales and marketing organisation, as well as its UK based engineering unit. KVS already has a direct presence in the UK, France, Germany, Australia, Benelux, and North America, as well as more than 90 partners operating in 15 countries worldwide.


Reading-based KVS has 500 customers and nearly three million user licences worldwide for its email management and content archiving services. It provides services for organisations such as The Financial Services Authority, British Gas, Warner Music International, Sony Corporation, Host Marriott and Herbert Smith.


“Unlike many other software companies, KVS continues to experience exponential growth and buck the economic trend,” said Mike Hedger, CEO of KVS. “The increasing demand for email management and retention in the context of corporate governance, transparency, auditing and disclosure is accelerating both the growth and the maturity of this huge market.”


“FTVentures strives to partner with proven companies in rapidly growing markets, with a focus on those that enable financial services worldwide to expand and operate more efficiently,” said Bob Huret, partner of FTVentures. “KVS is an excellent investment, due to its solid management team, superior product portfolio and strong partnerships.”