MOUNTAIN VIEW, Calif., June 16 PSS Systems, the leader inlegal holds and retention management solutions, announced it secured $18million in equity financing led by FTVentures. The company's existinginvestors, including Lightspeed Venture Partners, Azure Capital, GraniteVentures, and Cipio Partners, all renewed their investment in the company.PSS Systems will use the capital to aggressively expand its legal governanceproduct portfolio and its presence in the US and European markets.
PSS Systems established itself as the innovator and market leader when itlaunched its Atlas legal holds and retention policy suite nearly two yearsbefore revisions to the Federal Rules of Civil Procedure raised the bar forhow corporations preserve evidence and manage information. Similarly today,the company anticipates a substantial increase in global complexity asjudicial expectations in the US rise alongside increasing enforcement of dataprotection rules in the European Union. To expand on its leadership in legalgovernance solutions, PSS Systems will increase its R&D investment and expandits product family to address the growing complexities and data volumesplaguing global companies and to deepen its market lead.
"As we looked at PSS Systems, we were impressed with the level ofenthusiasm and advocacy expressed across their customer base; the company'simpressive domain expertise enables them to solve very difficult problems andprovide real value as business partners, substantially reducing risk and costfor their customers," said Eric Byunn, partner at FTVentures and new PSSSystems board member. "As the first mover to address an extremely thornychallenge, PSS has a tremendous lead in the market that is substantiated by ablue chip customer list which features seven of FTVentures financial serviceslimited partners including Citi, Credit Suisse, and Travelers."
"The ability to effectively manage your entire records system andnecessary legal holds acting on those records is essential in today's legalenvironment. Doing this reduces legal risk and effectively manages businessinformation assets," states Bruce Whitney, former assistant general counseland now advisor to Air Products. "PSS Systems is the only company that reallyunderstands and effectively addresses this important linkage. Its Atlasproduct suite is a natural choice for companies -- I'm one of many fans."
PSS Systems, which expects to be profitable this year, has achievedsignificant customer growth in 2008, adding new customers and industry leadersacross the energy, financial services, pharmaceutical, healthcare, andchemical industries worldwide. Existing customers have purchased additionalsoftware modules and increased the number of users during this period -- anexcellent testimony to the value they receive from the Atlas product family.With the new funds, PSS Systems will increase the number of customer-facingoffices in both the U.S. and Europe to expand its customer base and sustainits well-regarded service quality.
"The Atlas Suite, which is designed to enable corporations to implementand automate legally defensible retention and legal holds operations, hasachieved significant customer uptake and enjoys real customer loyalty," saidVivian Tero, Program Manager, Compliance Infrastructure Service, IDC.
The Atlas software suite reduces legal risk and cost by providing acomprehensive and coherent solution for legal holds, discovery, and retentionpolicy management. In order to comply, companies need to know what the lawsare and how they apply to them, as well as develop procedures to ensurecontinuous compliance. The Atlas suite enables companies to implementcorporate governance policies while complying with disparate country laws withgreater precision and control. "Increasingly, the practices of the legaldepartment impact the operational efficiencies of a company. There istrem