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RealTime IT News

VC Bets on Web Services Startup

Systinet, a Cambridge maker of software platforms to create Web services, has raised $21 million in financing to hire sales and marketing staff and enhance its product.

Warburg Pincus led the round. The new backing comes five months after Systinet raised a $2.3 million seed round from Windcrest Partners was lead investor. 3TS Venture Partners, Robin Neustein, and entrepreneur Esther Dyson.

"Web services has emerged as the next generation of distributed computing," said Cary Davis, of Warburg Pincus. "There is a tremendous opportunity for Systinet to be the leading independent software platform provider for Web services."

In its third version, Systinet's WASP (Web Applications and Services Platform) product is used by J.P. Morgan, Ericsson and Deutsche Telekom's T-Motion handle complex integrations and solve business problems.

Web services are software components representing a business function or service that are delivered using Internet standards that can be accessed by anyone, anywhere from any type of device.

"Unlike most Web services vendors, Systinet has a proven architecture with more than 10,000 registered users and hundreds of Web services deployments," said Roman Stanek, Systinet CEO and founder.

Stanek is perhaps best known as the creator of NetBeans, a software development platform, which he sold to Sun Microsystems in 1999.

Previously, privately held Systinet was known as Idoox. The company has about 75 engineers in Prague, where salaries are lower than in the United States, a Systinet spokesman said. That means the new venture capital will stretch far.