Venture bust in ConSentry shutdown

Some $80m in venture capital is at risk as a major network-access startup reportedly folded this week.

Venture capital firms Accel Partners, DAG Ventures, INVESCO Private Capital and Translink Capital saw one of their portfolio companies, ConSentry Networks, fold this week.

The network access control specialist accumulated more than $80 million in venture capital financing over its seven year life span, $9.4 million of which was most recently secured in January.

The news was first reported on Network World.

Accel Partners and Sequoia Capital invested $12 million in 2004, while the company was operating under its former name, Tidal Networks.

In 2005, the company raised an additional $17 million in an oversubscribed Series C funding round. Existing venture capital investors were joined by INVESO Private Capital, bringing ConSentry’s total funding to $31 million.

DAG Ventures invested in ConSentry in 2006 during its oversubscribed Series D round of funding. $20 million was raised, and the company’s total funding stood at $51 million. The company was named one of “15 Tech Start-ups to Watch” by InfoWorld, an IT trade magazine, earlier that year.

By 2009, ConSentry had secured an additional $30 million in venture capital.

Based in Milpitas, California, ConSentry Networks was founded in 2003. The Wall Street Journal reported today that network access controls were once thought to be “the next big thing” in information security.