Xalted Networks Closes $21 Million Series A Financing
Oversubscribed Round Led by Prominent Venture Capital Firms
PLANO, Texas--(BUSINESS WIRE)--Sept. 24, 2001--Xalted Networks, Inc.(TM), a provider of the industry's first Universal Access Exchange (UAX) in the broadband access market, today announced that it has closed its Series A round of financing at $21 million. The round was led by BlueStream Ventures, Granite Ventures, Charter Ventures and Alliance Ventures. The Company is currently in the process of raising its Series B round, which it expects to close by the end of the year.
Formed in 2000, Xalted Networks provides products to solve the access bandwidth bottleneck problem that has prevented carriers from deploying full-service broadband solutions to businesses and homes. Xalted Networks' products will allow carriers to provide mass-market broadband services such as video, data and voice over existing local loop copper and fiber facilities. Industry analyst firm RHK estimates that Xalted Networks' products address more than a $8 billion dollar segment of the access, transport and switching market, and that this segment is expected to grow to more than $40 billion by 2004.
``Next-generation access products are the next big opportunity in the communications sector,'' stated Tom Erickson, general partner at BlueStream. ``Carriers have a huge local-loop infrastructure and are looking for access products that can maximize the utilization of these facilities and provide customers the broadband services they want. We believe that Xalted's product architecture positions the company to be a leader in this market.''
According to Eric Zimits, managing director of Granite Ventures, ``Consumer demand for voice and high bandwidth video and data services will continue to grow at an exponential rate. Xalted Networks' product solutions and unique architectural designs will allow carriers to gracefully transition their networks to support next-generation broadband offerings while simultaneously allowing them to efficiently manage today's legacy services.''
``Xalted Networks is preparing to offer a product that will enable carriers to connect with customers in an entirely new way. The extremely talented people at Xalted Networks have created a next generation product platform that will deliver radically increased bandwidth for mass-market residential and business broadband services,'' added Bob Kondamoori, partner at Charter Ventures.
``We are extremely pleased with the responses we have received from carriers that are potential customers as well as from the investment community. This round of financing will allow us to execute our business plan and continue our strategic product rollout as scheduled,'' said Tim Phillips, president and co-founder of Xalted Networks.
At the closing of Series A financing, Tom Erickson and Travis Winkey (general partners of BlueStream Ventures) and Eric Zimits (managing director of Granite Ventures) join Bob Kondamoori (chairman and co-founder of Xalted Networks and partner at Charter Ventures) and Tim Phillips on the Company's Board of Directors.
About BlueStream Ventures
Founded in April 2000, BlueStream Ventures is a venture capital firm focused exclusively on networking hardware and software companies. With $280 million in committed capital, BlueStream invests in hardware companies that streamline the creation of networks and services and software companies that enable organizations to capitalize on this new infrastructure.
About Granite Ventures
Granite Ventures, LLC, formerly H&Q Venture Associates, LLC is a leading independent early-stage high tech venture capital firm with over $465M in capital under investment. Granite Ventures was formed in July 1998 as an independent venture capital firm spun out of Hambrecht & Quist, now Chase H&Q, one of the nation's leading investment banks focused on the technology industry. The firm manages corporate funds with technology industry leaders Adobe Systems Incorporated and Texas Instruments Incorporated. These corporate partners add world-class expertise in the areas of software, communications, and the Internet, Granite's main areas of investment. For more information, go to: www.granitevc.com.
About Charter Ventures
Charter Ventures is a leading early-stage venture capital firm that has helped entrepreneurs turn great ideas into great companies for more than 20 years. Based in Palo Alto, Calif., Charter invests in the areas of software, communications and life sciences. Recent investments include Maple Optical Networks, Cradle Technologies, Terago, Xalted Networks and Ellie Mae. More information on Charter Ventures can be found at www.CharterVentures.com.
biz.yahoo.com |
