Covalent Technologies, Inc., a leader in products and services for the open-source Apache Web server platform, announced it has secured $13 million in second-round funding. The funding round was led by Sequoia Capital, with key participation from Granite Ventures LLC (formerly H&Q Venture Associates LLC).

Participation by these leading venture capital firms represents an endorsement of Covalent's unique hybrid business model, which combines the benefits of both open-source and propriety technology. The new funds will be used to accelerate the company's growth in all business areas, including development of new products and services to support the Apache Web server market, and in expanded sales and marketing efforts.

"Because it was established by the original developers of the Apache Web server, Covalent understands the open-source server market better than anyone," said Douglas Leone, general partner at Sequoia Capital. "We and other investors believe that the combination of this level of talent, technical understanding and hybrid business model creates a very compelling new kind of company."

Covalent is pioneering a hybrid business model, which mixes proprietary software solutions with open-source platforms. This is different from other open-source companies, which provide service and support for open software, but do not produce proprietary products. Covalent contributes open-source code to the Apache platform, but also develops proprietary software for its customers.

"As increasing numbers of companies adopt Apache, Covalent's ability to optimize server performance, support the infrastructure and make Apache truly enterprise-ready is of growing importance," said John M. Jack, president and CEO of Covalent.

Companies such as Lucent Technologies, Dow Jones and others depend on Covalent for their Apache Web server infrastructure.

Founded in 1998 by Randy Terbush, one of the original eight developers of the Apache Web server, Covalent has established its preeminence in the open-source market. Today, Apache has the market-share lead in Web server software, running on roughly 63 percent of the world's Web sites. Covalent has brought together a team of the brightest minds in the Apache movement, known as the "Apache Dream Team," to support these users with products and services that enhance Apache for the enterprise.

Related Stories:
Red Hat expands e-commerce offerings(Dec 06, 2000)
Covalent Offers First Comprehensive Professional Services and Training Programs for Apache Web Server(Oct 24, 2000)
Covalent Technologies Introduces Extensive Suite of Products to Serve the Apache Web Server Community(Oct 24, 2000)
Upside: Covalent mixes proprietary and open source software(Oct 23, 2000)
Apache Module Registration: Covalent Antivirus for Apache(Sep 25, 2000)
Apache Module Registration: Covalent SNMP Conductor(Sep 25, 2000)
PR: Covalent Embeds Industry-Leading McAfee Virus Security in Module for the Apache Web Server(Aug 17, 2000)
Web Servers of the Fortune 500: A Dissection and Analysis(Jul 21, 2000)
PRN: Covalent Adopts RSA Security Products for Apache Web Server Solutions(Jul 14, 2000)