Layer N Networks, a network security solutions company has raised $20 million in Series B funding. The new investors were Technology Associates Management Company (TAMC), Chisholm Private Capital Partners, Stafford Investments while existing investors Granite Ventures, Austin Ventures, Seed Capital Partners, Convergent Investors and Agave Capital also took part.

The funding will go into increased production of their first product, to meet market demand, as well as to finance growth in sales, customer support and marketing to new application segments, according to Scott Perry, Vice President of Finance. The newly unveiled security product is targeted at network, security and server OEMs. “This financing is a testament to the tremendous market interest in the Layer N total security solution,” said Scott Perry.

Mike Salas, president and CEO, and Rajat Datta, currently the chief software architect, founded layer N Networks in March 2000. It is an Austin, Texas-based fabless semiconductor company supplying security solutions that enable deployment of robust security in all networked applications. Layer N designs and markets flexible networking and security ICs and subsystems. Analysts estimate the Secure Sockets Layer (SSL) Virtual Private Network (VPN) opportunity alone to be nearly $1 billion by 2007.