VINA Technologies Raises $12 Million in Third Round of Venture Financing.
Berkeley International and TeleSoft Partners Lead Group
Investing in VINA, Developer of Integrated Voice and Data Access
Products for Small to Mid-Sized Businesses
VINA Technologies, the voice and data integration company, today announced it has secured $12 million in its third round of venture financing, bringing the total the company has raised to $20 million. VINA's Multiservice T1 Integrator(TM) enables competitive local exchange carriers (CLECs) to cost-effectively integrate voice, data, and Internet traffic for small to mid-sized businesses.
The group investing in VINA is led by Berkeley International Capital Corporation (BICC) and TeleSoft Partners, both of San Francisco, Calif. They join VINA Technologies' existing investors who include Sequoia Capital and Sierra Ventures, both of Menlo Park, Calif.
Of the total funding amount, BICC provided $7 million, with TeleSoft providing $2.5 million and other partners, including Sumitomo Corporation, jointly providing the remainder. VINA plans to use the capital to fund the expansion of several key functions which will be crucial to the company's long-term success.
"This round of funding is significant for VINA in that the company is experiencing consistent growth thanks to increasing implementation of the Multiservice T1 Integrator by service providers, especially CLECs," said Josh Soske, president, VINA Technologies. "The funding will enable us to grow our sales and distribution channels while continuing new product development."
Service Provider/End User Benefits
The costs associated with building, expanding, and managing a traditional network infrastructure can be high. In an effort to keep their customers satisfied and to minimize churn, service providers are looking for ways to offer bundled voice and data services that are easy to turn-up and manage.
VINA's Multiservice T1 Integrator enables service providers to offer customers bundled voice and data services using their existing network infrastructure. In addition, the combination of the integrated system management along with the minimal outside plant provisioning required to turn-up the system enables service providers to cost-effectively deliver and manage these new bundled services.
The result for end users is the simplicity of one-stop shopping for new data and voice services and a single monthly bill.
"The small to mid-sized business market is huge. BICC's investment reflects our view that VINA's delivery of multiservice access technology at the edge of the network plays a key role in offering solutions that help service providers to cost-effectively deliver bundled services to this lucrative segment. VINA is well-positioned in an extremely promising market," said Arthur I. Trueger, executive chairman, BICC.
"We see VINA as a terrific investment opportunity because in the Multiservice T1 Integrator, the company has the perfect product at the right time, with Internet and packet data networks converging with voice and circuit-switched networks," said Arjun Gupta, founder and managing partner, TeleSoft Partners. He continued, "We were impressed with the engineering and architecture of the product, which clearly is best-of-breed in an extremely large and growing market. Further, many CLECs are emerging as a result of deregulation and they will require Customer Termination Equipment to provide their customers with the services they require."
Mr. Gupta added that VINA's management team, which includes industry veterans who have worked for prominent telecom companies, was a big plus. "We believe the management team will provide strong leadership and will deliver results," Mr. Gupta said. "We plan to leverage our extensive relationships in the telecom industry to bolster the many existing customer relationships that VINA has already established, as well as to make additional introductions to new potential customers."
VINA's Multiservice T1 Integrator
VINA markets its Multiservice TI Integrator to CLECs, including Intermedia Communications and Waller Creek Communications, as well as Interexchange Carriers, such as WorldCom and MCI. VINA also has distributors in the United States and Canada, Walker and Associates, Inc., of Welcome, N.C., and Cabletel Communications Corp. of Markham, Ontario, respectively.
Weighing under 10 pounds and only the size of a pizza box, VINA's Multiservice T1 Integrator combines the voice functionality of routing local and long distance calls with the data networking functionality of an IP/IPX router, a CSU/DSU, an Internet firewall and a remote access server for secure telecommuting via IPSec-based Virtual Private Networking (VPN).
The Multiservice T1 Integrator provides small and mid-sized businesses with secure, high-speed Internet access via a frame relay or T1 connection. The firewall and VPN capability allow the creation of a secure connection from an ISP to the customer's location. Also, the Multiservice T1 Integrator has a comprehensive set of diagnostic and fault management features as well as SNMP- and HTTP-based remote management capabilities.
About VINA Technologies
Founded in 1996, VINA Technologies bridges the gap between the worlds of telecommunications and data communications by delivering multiservice integration at the network edge. Marketed to service providers and distributors, VINA's customer premises solutions enable service providers to cost-effectively deliver integrated voice, data and Internet services to small to mid-sized businesses and branch offices (10 to 100 employees). Available since 1997, the company's premier product, the Multiservice T1 Integrator, is a compact, economical device that represents an industry first, integrating voice, data and Internet traffic onto a single T1. VINA Technologies is located at 42709 Lawrence Place, Fremont, CA 94538; 1-888-774-VINA; www.vina-tech.com.
About Berkeley International Capital Corp.
BICC arranges private placement investments into rapidly growing technology and medical companies. BICC is a wholly owned subsidiary of London Pacific Group Limited, a diversified international financial services firm with total assets under management and administration of more than $7 billion.
Berkeley's past investments include America Online, Inc., Broderbund Software, Inc., Oracle Corp., 3Com Corp., Sequent Computer Systems, Inc., Cypress Semiconductor Corp. and Cirrus Logic, Inc.
About TeleSoft Partners
TeleSoft Partners is a new venture fund focusing on next-generation telecom services, software and systems companies nationwide.
T1 Integrator is a trademark of VINA Technologies. All other trademarks or registered trademarks are the property of their respective owners.
CONTACT: VINA Technologies, Fremont
Nancy J. Smith, 510/413-1315, email@example.com
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|Date:||Jul 13, 1998|
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