June 25, 2001
- Action, MA
WaveSmith Networks, an emerging company focused on redefining multiservice switching for carriers, announced today that it has secured up to $31 million in second round financing with top-tier firm Fidelity Ventures as the lead investor, with subsequent closings anticipated to finalize the round. WaveSmith's A-round investors, Bessemer Venture Partners, Atlas Venture, and Commonwealth Capital also contributed to the company's second round. Closing this successful round given the current market conditions, is a true testament to the strength of WaveSmith's management team, as well as the company's business proposition to deliver a next generation multiservice switching platform that supports today's legacy services, but also provides a smooth migration path to the next-generation network.
“What attracted us most to WaveSmith is its focus on the segment of the network that carriers continue to spend billions of dollars on annually,” said Robert Ketterson, managing director of Fidelity Ventures. “WaveSmith has made impressive progress in its first year and has already secured several name-brand carriers to beta test its products. WaveSmith's ability to execute positions it quite well for success.”
The funding will be used to continue the development of the DN™ multiservice switching product family, as well as prepare for general availability in Q4 of 2001. The DN family is designed to help carriers sustain the growth of their legacy systems, and provide the means to leverage that infrastructure into next-generation IP/MPLS services. The DN family is built from the ground-up to provide carriers with the level of form factor, scalability, reliability, and IP/MPLS migration that cannot be achieved with today's multiservice technologies.
The company also plans to continue to expand the sales and support organizations on a national and global level.
"We are excited to also be apart of WaveSmith's second round of financing. The company is firing on all cylinders and has targeted a large, current pain-point in carriers' networks," said Rob L. Soni, managing partner at Bessemer Venture Partners. "WaveSmith continues to be one of the most impressive start-ups in our portfolio and we look forward to seeing even greater success in the future."
"WaveSmith has created quite a stir in the industry because they are building a solution that so many other vendors missed," said Michael Feinstein senior principal at Atlas Venture. "They have already seen interest from some of the largest carriers and have executed on all fronts, which is the reason why WaveSmith is one of the few start-ups to get strong funding traction in this current market environment."
“This second round of financing from top-tier investors marks a major milestone for the company. We have made excellent headway in product development, sales, and marketing. This round will take WaveSmith well into the revenue generation stage of the company's lifecycle,” said Robert Dalias, president and CEO of WaveSmith Networks. “In today's market, the only companies that will receive funding are those that can prove there is an existing need for their product and most importantly, customer validation and interest. The recent announcement of our product family and industry recognition we have received, combined with our list of beta customers, demonstrates that WaveSmith is for real and is now poised to claim market share in the multiservice switching market.”