Funding for Core Internet Networking Company Caspian Networks Tops $140 Million"Not Your Typical Optical Startup,'' Say Investors as Company Receives New $85M Third Round FinancingSAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 6, 2000-- Caspian Networks, Inc., a new networking company quietly developing new hardware for the heart of the Internet, has become one of the world's best-funded networking startups, securing a new $85M third round of financing. The latest round represents re-commitment from the company's previous blue-chip investors and, in a substantial vote of enthusiasm from Wall Street, adds significant investment from a number of the world's largest investment banks. Caspian Networks is funded by well-known top tier technology investors, many with histories of taking networking companies public with great success. Original first and second round investors include U.S. Venture Partners, New Enterprise Associates, Lucent Venture Partners, WorldCom Ventures, Vulcan Ventures, Alloy Ventures and Applied Technologies. Prominent individuals reconfirming their investments include MIT media lab director and author Nicholas Negroponte, computer pioneer Gordon Bell, Internet co-founder Leonard Kleinrock, as well as employees of Caspian Networks. Two previous rounds of investment totaled $55M. Substantial New Wall Street and Employee InvestmentSharing the lead in this third round are investment bank Merrill Lynch and venture capital firm H&Q Asia Pacific. Other institutional investors participating for the first time in this round include SSB Capital Partners, the private equity fund of investment bank Salomon Smith Barney, global bank group ABN AMRO Private Equity and venture capital firms Global Technology Group Ventures, Acute Communications and i100 Optical Asia, a subsidiary of technology operating investor i100 Limited. $1.1M of this third round represents continued investment by Caspian employees, illustrating their commitment and enthusiasm for the company's technology and ability to execute. "In this economic climate where it's been difficult to keep early investors round by round, Caspian Networks continues to execute according to plan -- and previous investors have reaffirmed their confidence in us," said Caspian Networks CEO Grahame Rance. "Furthermore, substantial investment by the world's leading investment banks is a testament to the financial community's confidence in Caspian's promise for the future." About Caspian NetworksCaspian Networks is a breakthrough new Internet infrastructure company designing a new generation of equipment for the heart of the largest networks in the world -- the service provider networks upon which the Internet runs. Caspian's new category of product will allow service providers to do more with their networks than previously thought possible. Caspian was incorporated in 1999 by Internet founder Dr. Lawrence Roberts. The company currently has more than 300 employees and offices in San Jose, California; Minneapolis, Minnesota; Research Triangle Park, North Carolina and Washington D.C. The company will launch its products in 2001. For more information, visit Caspian Networks' web site at www.caspiannetworks.com. For interviews with Caspian Networks CEO Grahame Rance or Caspian investors, or for further information about Caspian Networks, contact:
A Significant New Company In A Red-Hot MarketCaspian Networks is building a next-generation core for service providers' optical networks. Caspian is not just delivering basic terabit capacity, but is addressing limitations of the Internet and IP networking itself. The company has created and fully staffed sales, marketing, operational, legal and other departments in preparation for product introduction and an industry presence over the long term. "Caspian is a unique investment opportunity. The company's exciting new design for the heart of next generation networks is unlike any other company 's approach. Combine this technology vision with Caspian's world class management team," said Heiner Sussner, senior managing director of H&Q Asia Pacific, "and it's clear this company is not your typical networking startup." "We believe Caspian's ground-breaking technology will allow carriers to solve their scalability and reliability problems immediately. At the same time, Caspian's products lay the technology foundation for an all-optical network future. This company is not just another optical startup -- it has a great management team committed to building the company for the long term," said Peter Morris, general partner of New Enterprise Associates. Other investors are equally impressed with Caspian Networks and what the company is building. See attached quote sheet. Caspian Networks Investor Quote Sheet"Caspian Networks has compelling solutions to carriers' core network problems. What we find unique about Caspian's approach is an architectural relevance and extensibility through the next ten years. Caspian is in a totally different class of emerging equipment solutions provider. We see them playing a key role in infrastructure buildouts and upgrades that will blend optical elements, core switching and high speed routing technologies in a powerful combination which will squarely address rapidly changing network priorities." Neil Vasant, General Partner Lucent Venture Partners. "The demands placed on carriers today are growing in complexity. We believe that Caspian Networks will deliver a solution for network operators' requirements that is superior to other vendors' approaches. At the same time, the company is introducing new ways for carriers to drive revenue. We' re very excited to be partnering with Caspian." Matthew A. Carpenter, Vice President SSB Capital Partners, the private equity fund of Salomon Smith Barney. "Caspian attracted me right from the start because of the people and their belief in indefinitely scalable systems. The team had the right ideas and design principles to make a major contribution to networking, and be the enabler in Internet growth." Gordon Bell, computing pioneer and Caspian Networks investor. "Caspian Networks has pulled together a powerful combination: an innovative next-generation switch architecture, targeted at an important large market, with an experienced industry team. This is the kind of combination in which Alloy Ventures likes to invest." John Shoch, General Partner Alloy Ventures. "Caspian Networks has developed a killer packet switch technology as well as a compelling technical vision led by one of the fathers of the Internet, Dr. Larry Roberts. This company has a very bright future." Leonard Kleinrock, Internet co-founder and Caspian Networks investor. "If anybody invented the Internet, it was Larry Roberts. I invested in Caspian because Larry has never stopped innovating and nobody in the world has more experience with infrastructural design." Nicholas Negroponte, Co-Founder/Director MIT Media Laboratory and Caspian Networks investor. "Larry Roberts' insights from a lifetime of involvement with the Internet have enabled Caspian to design a core-of-the-network switch architecture that both scales with the accelerating growth in Internet traffic and provides other meaningful enhancements as well. It is a brilliantly conceived product that is being superbly managed through its development by a seasoned and motivated professional management team. It is the right thing at the right time -- a true generation-skipping opportunity in an important multibillion dollar market." Philip M. Young, General Partner U.S. Venture Partners. "Caspian's optical network technology will simplify and transform the communications infrastructure for the next generation. We at i100 are excited to help spearhead this revolution in the Asia Pacific region." Laurie Kan, CEO i100 Limited. Eastwick Communications (for Caspian Networks, Inc.) |
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