The company will use the cash to invest in late-stage companies.
F-U-N-D-E-D is a regular column looking -- and sometimes laughing -- at what Silicon Valley has backed in the last week.
The idea behind this sort of late-stage fund--this one would have input from Al Gore--is to help start-ups survive the transition from tech development to commercial sales.
NetDynamics announced a third round of private funding totaling $8.5 million. The late-stage funding comes from The Galleon Group, Attractor Investment Management, Van Wagoner Capital Management, and Integral Capital Partners. This brings the company's total venture funding to $15.4 million. NetDynamics said it will use the additional funding to sustain its growth in Asian and European markets.