XConnect Raises $10 Million in Series B Funding
Round to Support Continued Growth of IP Interconnection Services, Driving Adoption of Cross-Network NGN Offerings
LONDON – Sept 16, 2009 – XConnect, the global leader in neutral and secure next-generation interconnection and ENUM-registry services, today announced it has raised $10 million in Series B funding.
A consortium of investors, including Venrock Associates (U.S.), Accel Partners (U.K.), Grazia Equity (Germany) and Crescent Point Group (Singapore), participated.
The financing will enable London-based XConnect to continue expanding its “Interconnect 2.0” portfolio, which includes Carrier ENUM-registry and multimedia interconnection hub services.
Interconnect 2.0 offers the most comprehensive suite of services to meet operators’ growing needs to efficiently deliver new revenue-generating multimedia services, such as high-definition voice and video, across IP networks, while increasing service quality and reducing costs. XConnect operates the largest worldwide ENUM-based IP-peering federation, the Global Alliance, and the world’s first national VoIP and NGN interconnection federations, in the Netherlands and Korea.
"This investment by Tier 1 venture capital firms during challenging economic times is a strong endorsement of federated interconnection and demonstrates belief in XConnect's Interconnect 2.0 strategy for driving migration from the PSTN to next-generation IP communications," said XConnect Chairman Ohad Finkelstein. "The global reach of our investors underscores their grasp of our company’s worldwide impact and growing international prospects."
Eli Katz, XConnect CEO and founder, added: "The new funding is perfectly timed. The rapid global market adoption of NGN and VoIP infrastructure by fixed, mobile and Web 2.0 operators, together with the need to deploy rich multimedia communication services across networks, is driving demand for our next-generation interconnection and ENUM services."
In related news, XConnect announced that Torsten Kreindl, a partner at Grazia, and David Hand, a partner and managing director at Crescent Point, will join its board of directors. Before entering the international venture investment field, Kreindl, currently a Swisscom director, served as CEO of Deutsche Telekom’s broadband cable business. Hand brings experience in emerging markets from a corporate-finance perspective, developed at Crescent Point and Morgan Stanley, and specializes in Asia-Pacific investments.
"We are enthused to be contributing to the continuing growth of XConnect – an innovative pioneer that is uniquely primed to ride the NGN wave and promote the transition to all-IP communications,” Hand said. “We are particularly impressed by XConnect’s track record in Asia, where its establishment of the first Korean IP-peering federation signifies leadership and points to expansion in emerging markets."
About XConnect: The global leader in network peering, XConnect is trusted by more than 100
IP-based service providers to offer a suite of Interconnect 2.0 services, including Carrier ENUM-registry and next-generation multimedia interconnection hub solutions. London-based XConnect offers the most comprehensive and reliable solutions to help service providers deliver rich multimedia IP communications across networks while improving service quality and reducing costs. Backed by Tier 1 venture capital firms, XConnect operates the largest worldwide ENUM-based IP-peering federation, the Global Alliance, and the world’s first national VoIP/NGN interconnection federations, in the Netherlands and Korea. For more information, please visit, www.xconnect.net.
About Accel Partners: Founded in 1983 and with offices in Palo Alto, London, Bangalore and China (via the IDG-Accel Partnership), Accel Partners has a history of excellence and innovation in the venture capital business. Accel is dedicated to partnering with outstanding entrepreneurs and management teams to build world-class internet and technology businesses. Category-defining companies backed by Accel include Admob, Actuate, Agile Software, Alfresco, Arrowpoint, BBN Technologies, BitTorrent, Brightcove, Brightmail, ComScore, Facebook, Foundry Networks, Gameforge, GlamMedia, Infinera, Interwoven, JBoss, Kayak, Macromedia, metroPCS, Polycom/PictureTel, QlikTech, Real Networks, Redback Networks, Remedy, Riverbed, SupportSoft, UUNet, Veritas, Walmart.com, Wily Technology, XenSource and Zimbra. (www.accel.com)
About Venrock: Venrock is a premier venture capital firm with offices in Palo Alto, New York, Cambridge, MA, and Israel. Originally established as the venture capital arm of the Rockefeller family, Venrock continues a seven-decade tradition of partnering with entrepreneurs to establish successful, enduring companies. Having invested $2.2 billion in 417 companies resulting in 124 IPOs over the past 39 years, Venrock's investment returns place it among the top tier venture capital firms that have achieved consistently superior performance. With a primary focus on technology, healthcare, and energy, portfolio companies have included Adify, Adnexus Therapeutics, Apple Computer, Centocor, Check Point Software, DoubleClick, Gilead Sciences, Idec Pharmaceuticals, Illumina, Intel, Millennium Pharmaceuticals, Sirna Therapeutics, StrataCom, and Vontu. For more information, please visit Venrock's website at www.venrock.com.
About Grazia Equity: Grazia, located in Stuttgart and Munich, is one of the leading European VC companies focussing on young and highly innovative companies. Grazia’s success relies on a partnership with extraordinarily strong entrepreneurial teams to turn them into international market leaders. Since Grazia does not depend on institutional investors it is known for pragmatic and quick decisions. Grazia’s portfolio companies profit from the wide entrepreneurial background of its partner team as well as a far-reaching international network. That’s why some of America’s best VC companies trust in Grazia’s expertise by making common investments. Grazia’s partner team has supported so far more than 40 companies. (www.grazia.com)
About Crescent Point Group: Crescent Point Group is an investment management and advisory group with a geographic concentration on the Asia Pacific and Middle East regions. The Group makes and manages proprietary, private equity related investments on behalf of sophisticated individual and institutional investors from around the globe. The Group operates professionally staffed offices in Singapore, Shanghai and Jeddah and employs senior executives of the firm in London, New York and Kuala Lumpur. (www.cgcm.com)