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Veriseo has been around since 1997 as a division of Obsidian Software. Obsidian Software was formed in 1997 by three semiconductor verification engineers. While working on a state-of-the-art processor, they realized the number of gates on a chip was growing so fast that engineers could no longer write tests fast enough. A new tool and methodology was needed to verify the chip. The company landed its first customer shortly after starting business, and has been profitable ever since. In 2003, Obsidian made the Inc 500 as one of the fastest growing privately held companies in the US. The company has also been repeatedly named to the Austin Business Journal's Fast 50. Obsidian's tool was called RAVEN, and it introduced a random test methodology on a broad commercial scale. Customers liked the tool and methodology so much that Obsidian started to grow a verification services organization. The business grew rapidly, but was limited because Obsidian only provided processor verification engineers, and then only to RAVEN customers. After creating a detailed business plan, which was validated through extensive conversations with people on all sides of the technical staffing industry, Obsidian's board made the decision to form a separate company focused on professional services. Veriseo Corporation became a wholly owned subsidiary of Obsidian Software in 2004. The name Veriseo is derived from the company's roots as a VERIfication SErvices Organization.