FaceTime Communications Inc. is getting more facetime with customers and venture capitalists, thanks to federal rules requiring companies to archive instant messages.
The IM archive software startup claims the rules have propelled it to 350 customers, and today the company announced a $16 million third round of funding. JK&B Capital
led the round with participation from previous investors BA Ventures, LLC, Sutter Hill Ventures, and TH Lee Putnam Ventures. FaceTime has raised $30 million since July 2001.
JK&B partner Tom Neustaetter joins the FaceTime board of directors, which already includes representatives from its other VC investors. "We've had our eye on the IM security and compliance market for some time," Neustaetter said.
FaceTime and its chief competitors, IMlogic Inc. and Akonix Systems Inc., received a big boost in June 2003 when the National Association of Securities Dealers Inc. (NASD) ruled that financial services companies must save all IM correspondence, as well as emails, for at least three years (see IM Gets Regulated). IM management software captures the IM stream and archives it as searchable, logical conversations. The software can also block messages containing certain words, or can highlight messages containing the words.
FaceTimes IM Auditor works with EMC Corp.'s (NYSE: EMC) Centera content addressed storage (CAS) system to let companies archive IMs. FaceTime also works with email archiving software from EMC Legato, KVS Inc., Zantaz Inc., and Iron Mountain Inc. (NYSE: IRM) (see FaceTime Extends Compliance Program).