September 8, 2009
VC Firms, Vertex Venture Capital, ATA Ventures, Argonaut Ventures, T-Venture, and others Invest $10 Million in Actelis
Based in Freemont, California, one of the United States leading ehternet copper cable developers, Actelis announced today that it has raised $10 million from its existing investors, who include Vertex Venture Capital, T-Venture, ATA Ventures, Argonaut Ventures, Carlyle Venture Partners, Dupont Capital Management, Global Catalyst Partners, Saints Venture Partners, and others.
Founded in 1998, Actelis is a leader in the development of ethernet equipment and cables. Actelis has a product portfolio that has a wide range of solutions to serve ethernet companies worldwide. Some of these solutions include the First Mile technology platform. Many of the products that Actelis offers to its customers are highly flexible and cost effective. Furthermore, Actelis products can be used for point to point as well as point to multipoint configurations, allowing for speeds that are acceptable for today’s internet demands.
Proceeds from this round of funding will go to help Actelis to support its further growth and continuing deployment of its ethernet networks in the First Mile technology platform by telecommunication and IT service providers throughout the world. Furthermore, Actelis ethernet products are also being used more in the educational, healthcare, and private enterprise IT markets. Furthermore, Actelis technology is also being used by a growing number of municipalities who are in the process of upgrading their transportation networks with new intellegent transportation systems or ITS to oversee and control all aspects of municipal public transportation.
According to the president and CEO of Actelis, Tuvia Barlev; as far as the telecom industry is concerned, the carrier ethernet market is one of the fastest growing markets within the industry. Mr. Barlev further stated that the EFM solutions that Actelis is developing can provide many different opportunities for the company.
Currently, Actelis is experiencing record growth with the acquisition of new contracts world wide. Some of the major contracts that Actelis has recently sealed include a contract with Slovenia’s telecom company, Telekom Slovenije and France’s France Telecom-Orange.
Although Actelis has won these big contracts, the company also wants to focus on markets in the United States. Proceeds from this funding will also enable Actelis to seize opportunities that have been presented to the company with the presentation of a $7.2 billion broadband stimulus package that is offered by the Obama Administration’s American Recovery and Reinvestment Act, which was passed in 2009.
The one problem, however, is that the financial situation that Actelis is finding itself in is a rather embarrassing situation for its investors. Over the past eleven years, the company has raised over $150 million and this has raised the question to some of Actelis’s investors about how they will make their returns from the company.
Vertex Venture Capital is one of Israel’s top tier vc firms that primarily invests in works closely with the entrepreneurs in which the vc firm invests in. Vertex primarily invests in Israeli or Israel-related companies and invests in all stages of a company’s life. The companies that Vertex Venture Capital primarily invests in are companies who are in the software, information networking, communications, and IT industries. Some other companies in Vertex’s portfolio include Ethos Networks, Expand Networks, Extricom, Zeugma, Percello, and others.
For more information about Actelis, click here.