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Saturday, August 8, 2009

LifeLock gets $40 million from new investors

LifeLock has bilked investors out of $40 Million, supposedly to expand into new distribution channels, although LifeLock will probably need it for all the lawsuits being filed against it now that its illegal practices have been brought to light. But here's the article from Patrick O'Grady of the Phoenix Business Journal:

"LifeLock Inc. raised $40 million in its latest financing round, bringing aboard software piracy heavyweight Symantec Corp. as one of the investors.

The money will be used to help the company expand into different distribution channels, continue its marketing push and keep up with its infrastructure, which has seen the company grow exponentially in the past two years, said CEO Todd Davis.

'We’ll continue to bring out our product offerings, continue to build our infrastructure,' he said, adding the company needs to make sure it has the equipment needed for its more than 440 employees.

In addition to new investor Symantec, a provider of computer and Internet security programs such as Norton AntiVirus, the funding round included previous investors Goldman Sachs & Co., Kleiner Perkins Caufield & Byers and Bessemer Venture Partners.

Symantec and LifeLock announced a partnership Friday morning in which a free, 30-day subscription to LifeLock’s credit alert system is being made available to purchasers of some Symantec products. The deal opens a broader distribution channel for the Scottsdale-based company, which has about 1.5 million clients paying up to $10 a month to have their credit reports monitored for unusual activity.

Part of the investment also will be used to help LifeLock expand beyond providing credit alerts. The Symantec deal is part of the company’s effort to broaden its appeal to providing security in various areas, Davis said.

The funding round is LifeLock’s fourth and one of the largest this year in Arizona.

'For companies that are demonstrating real growth, there is still money to be had,' Davis said.
LifeLock’s four rounds funding have netted the company a total of about $77 million. The company has been expanding despite a setback in a lawsuit brought against it by credit bureau reporting agency Experian, which alleges its placement of fraud alerts are not allowed under the Fair Credit Reporting Act."

To read my prior posts about LifeLock and the various lawsuits being filed against it, see here - http://fcralawyer.blogspot.com/search/label/LifeLock.

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