Qwaq Raises $7 Million

Qwaq Inc., a Palo Alto, Calif.-based developer of virtual spaces for enterprises, has raised $7 million in its first round of institutional funding. Alloy Ventures and Storm Ventures co-led the round.

 

PRESS RELEASE

Qwaq, Inc., the creators of virtual spaces for the enterprise, today announced it has secured $7 million in its first institutional round, co-led by Alloy Ventures and Storm Ventures with participation from previous investors. The funds will be used to expand Qwaq's sales, marketing, product and engineering teams and initiatives. Ammar Hanafi, general partner at Alloy Ventures, and Alex Mendez, founding general partner at Storm Ventures, will join Qwaq's board of directors.

“Alloy and Storm are quality investors that have successfully worked together in the past and will contribute to our future growth,” said Greg Nuyens, Qwaq's CEO. “These funds will help us meet staffing and investment requirements in critical areas so we are well equipped to continue to create and deliver innovative virtual technology for the enterprise.”

Qwaq Forums, a secure virtual workspace application released by Qwaq earlier this year, significantly enhances the productivity of distributed teams by bringing critical resources together in a virtual place, as if they were in the same physical location. With Qwaq Forums, users have all the tools and collaboration capabilities they need to work more effectively together to collectively establish workflow steps, create or review information in software applications, and evaluate designs in 2D and 3D, all while discussing topics using built-in text and voice chat. Qwaq Forums virtual workspaces are always available so users can return to a forum at any time to access and view changes that have occurred since they last visited the virtual space.

With a significant focus on information technology investments, including communications infrastructure, Alloy Ventures was drawn to Qwaq's unique approach to virtual enterprise collaboration. The intersection of software as a service and virtual spaces provides a huge market opportunity and the ability to deliver truly innovative collaboration capabilities to the enterprise, said Ammar Hanafi. Qwaq is well positioned at the forefront of this intersection and its management team has a history of building successful ventures together.

Also focused on information technology, Storm Ventures looks for investment opportunities that can alter the way information is used, shared, delivered and protected. Globalization of distributed workforces is driving market demand for virtual collaboration through immersive 3D technologies, said Alex Mendez. We believe that Qwaq's technology, approach and successes to date make it well suited to capitalize on these new market opportunities.

Qwaq software is in use today by several large enterprises, organizations and research facilities. In addition, Qwaq and Intel announced in September their plans to work together to integrate Intel's Miramar technology into a new desktop visualization edition of Qwaq Forums, which is expected be available next year. For more information, visit www.qwaq.com.

About Alloy Ventures

Based in Palo Alto, CA, Alloy Ventures has been providing venture capital funding to entrepreneurs since 1977. The primary investment focus is on seed- and early-stage companies in markets serviced by information and life science technologies. Leading institutional investors, endowments, and others have committed more than $1 billion to seven vintage year investment partnerships managed by Alloy. More than 175 companies have received funding from these venture funds. Alloy Ventures' partners are experts at helping new and seasoned entrepreneurs define, evolve and execute a strategy that maximizes the chance of success. For more information, please visit www.alloyventures.com.

About Storm Ventures

Storm Ventures was founded in 2000 by a seasoned group of industry veterans with the common vision of sharing our collective experience, passion and energy to help talented and driven entrepreneurs build great companies of enduring value. Storm Ventures focuses on seed and early stage information technology companies which best leverages the team's operational perspective and experience and enables Storm to add value in the critical early stages of a company's development. For more information on Storm Ventures, visit its website at www.stormventures.com.

About Qwaq, Inc.

Qwaq, Inc. is creating virtual spaces for the enterprise that enable collaboration in ways that were not possible before. Qwaq Forums, the company's first product, is a secure virtual workspace application that significantly increases the productivity of distributed teams by bringing critical resources together in virtual places, as if they were in an actual physical location. A highly interactive and persistent environment, Qwaq Forums enables users to work, collaborate with others, and identify and solve problems.