VC-Backed Busts: Autonomic Networks

#7. Autonomic Networks

 Mountain View, Calif.-based provider of network security compliance solutions.

Investment
Autonomic Networks raised around $71 million in VC funding since its 2001 formation as Vernier Networks, from firms like Allegis Capital, FT Ventures, DCM, Foundation Capital, Masthead Venture Partners, Weber Capital Management, UV Partners and Venrock. This includes a $21 million Series E round in 2005, and some subsequent bridge financing.

What happened?
This is the second NAC vendor on our list, following ConSentry Networks at number five. It’s basically a space that raised tons of venture capital, but one in which small companies were caught off guard when the heat — and customers — began to wear off. Plus, it didn’t help that big players had consolidation on the brain. Autonomic made a last-ditch effort to switch from security to compliance (thus the name change from Vernier), but gave up the ghost in February after failing to secure new funding.

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