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Active Reasoning Racks Up $11.5M

Data center software startup Active Reasoning Inc. has snapped up $11.5 million in Series B funding as it expands its efforts to help firms tackle the Sarbanes-Oxley Act (SOA).

The round, which was led by InterWest Partners, also included existing investors ArrowPath Venture Capital, ComVentures, and Onset Ventures. This influx doubles the total amount of funding received by Active Reasoning. It follows a Series A round in October 2002 and some additional money just over a year later.

The Palo Alto, Calif.-based firm sells software that provides information on the extent of firms SOA-compliance. Essentially, these products monitor changes to the underlying infrastructure of firms’ specific applications and compile data that can then be passed on to auditors.

The SOA, passed in response to the scandals at Enron, WorldCom, et al, requires company managers to attest that they have established -- and continue to maintain -- internal control over their company’s financial reporting (see Gartner: Sarbanes Struggle Continues).

”We are saying that we can automate the data collection for you,” says Randy Brasche, Active Reasoning’s director of product marketing. “Compliance has taken a big pop over the last few months or so.”

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