The Series B financing brings the total capital raised to date to over $20 million and introduces new investor InterWest Partners to existing investors Bessemer Venture Partners, ComVentures, and KB Partners, who also participated in this round.

“Although it is still a very challenging fund-raising climate for technology startups, there is still a lot of quality money available for companies with strong business plans and products that clearly address a current and growing customer need. Startups also have to demonstrate significant customer traction than what was typically acceptable in the past,” says co-founder and VP of marketing John Chirapurath.

And that is exactly why Sarvega got funded. The company has several large paying customers and large partners. Some of the high-profile customers include 3Com’s CommWorks and Fujitsu as well as financial services and health care organizations such as Chicago’s Mt. Sinai Hospital Systems. The company claims that its appliances have saved millions of dollars while delivering order-of-magnitude performance improvements at these organizations.

These enterprises deploy Sarvega’s switches to receive the deep data intelligence and specialized processing power they need to offload complex and expensive XML processing from web and application server infrastructures.

“We are very pleased that Sarvega's strong market growth and customer traction are being validated by prestigious venture firms,” says Sunil Gaitonde, co-founder and CEO. “We will use this funding to strengthen our momentum in the marketplace, expanding our sales and marketing activities as well as research and development.”

It may be recalled that siliconindia awarded ‘Startup of the Year 2002’ to Sarvega. Gaitonde, Chirapurath and Girish Juneja founded the company in 2000.