Headquartered in Sunnyvale, California, Cloudshield is a market leader in packet processing at wire speed. Their programming language and open architecture enable network administrators to more efficiently manage subscriber traffic, employ key security functionality, and meet Federal mandates. This capability substantially increases data loss protection, enables compliance policy and reduces the cost of traditional switching in the data center. During its growth, the Company built a significant portfolio of IP to protect its position in the marketplace.
Paladin was first introduced to Cloudshield by a Federal Agency that was evaluating the Company’s technology. Despite the obvious fit, it was unclear to the Company as to the potential opportunity due to a lack of security-cleared employees that could discuss the program. Paladin approached the Company to lead their next round, joining the existing syndicate of Foundation Capital, TPG Partners and Com Ventures. The Paladin Board Member, who holds an active government clearance, was able to have classified discussions with interested customers months before anyone in the company obtained a security clearance. This advantage in the market led to large long-term contracts with some of the most influential buyers in the Federal government. In addition, Paladin made introductions to key large systems integrators to partner on future projects. Paladin also brought Art Money, former Assistant Secretary of Defense, to the Cloudshield Advisory Board to facilitate deeper alliances with other government customers. Paladin further assisted the Company in finding a VP of Federal Sales that helped build the Company’s Federal business from the ground up.
With Paladin’s advisement, assistance and networks, Cloudshield was able to grow significant revenue from government customers and is currently a strategic part of the National Cyber Security Infrastructure. Cloudshield was acquired by SAIC in February 2010.