Flamenco Networks, a provider of Web services networking solutions, has raised an additional $7.4 million in a Series B round of financing from three institutions, including new investor Flagship Ventures of Cambridge, MA.

Flagship is joined in this round by Atlanta-based Noro-Moseley Partners and Cordova Ventures, both firms having provided part of Flamenco’s initial funding of $6.4 million. Flamenco Networks says it will use the additional funds to further invest in product development, business development and marketing.

“Web services are no longer a boardroom concept,” Dave Spicer, chief executive officer of Flamenco Networks, said in a statement. “More and more companies are implementing projects and discovering that they need a Web services management infrastructure like the Flamenco Network. This investment allows us to expand in tandem with what we believe will be rapidly increasing market demand.”

As a part of the deal, Jim Matheson of Flagship Ventures has joined Flamenco’s board of directors. Matheson has been with Flagship Ventures since 2000, where his primary areas of focus are software applications and technology infrastructures.

“Web services management solutions and peer-to-peer networking technologies are poised to have significant impact on the way companies do business and Flamenco Networks has captured a leadership position in both,” Matheson said in a statement. “We look forward to working with the company and assisting them through this period of rapid market expansion.”

Before joining Flagship Ventures, Matheson served for 15 years as an officer and fighter pilot in the U.S. Navy, earned a BS in Computer Science from the U.S. Naval Academy and an MBA from Harvard Business School. He also serves as director on the board of Yantra, and as board observer for Affinnova, Brainshark, Blue Agave Software and OnExhange, which are all Flagship Ventures portfolio companies.

“We are honored to be associated with Flagship Ventures and to have Jim join our leadership team,” Spicer said. “Their experience with successfully growing technology companies in new markets will be invaluable as Flamenco pursues its goal of becoming a market leader in providing Web services management solutions.”

Flamenco Networks was founded in March 2000 and is headquartered in Atlanta. By eliminating the cross-platform and cross-organization implementation and management issues associated with Web services, Flamenco Networks strives to accelerate time-to-benefit while claiming to reduce project costs by up to 80 percent.

Flamenco Networks: www.flamenconetworks.com