Ventures News: Broadbus Technologies Closes Oversubscribed Series A-1 Financing
BOXBOROUGH, MA October 7, 2002 - Broadbus Technologies, Inc., the leading next-generation provider of video-on-demand (VoD) server systems for the cable television industry, today announced the closing of its Series A-1 round of financing, raising more than $12 Million. Leading the round are both Battery Ventures and Charles River Ventures. Comcast Interactive Capital, Wolf Ventures and several other private investors also participated. Broadbus will use the funds to fully execute on its business plan and facilitate the strategic product launch of its VOD server system. Santo Politi, general partner with Charles River Ventures and Todd Dagres, general partner with Battery Ventures will join the Companys board of directors.
In addition, Broadbus announced that it will establish a new headquarters in Boxborough, Massachusetts as of the 15th of October.
"Battery Ventures and Charles River are two of the premier venture funds in the cable space. Their decision to co-lead our round during this extremely difficult funding environment is a testament to our world class team and technology," said Jeffrey Binder, CEO of Broadbus Technologies. Comcast Interactive Capitals participation is likewise a compelling endorsement of the future potential for our new and unique server architecture and we continue to be excited by the response of major cable operators to the Broadbus B-1 server system. We look forward to working with the industry as VoD offerings expand to include the time phase shifting of live and pre-recorded television.
"Broadbus is in an ideal position to accelerate the deployment of todays VoD and subscription video-on-demand (SVoD) services, and to provide an elegant migration path to tomorrows full-scale Television-on-Demand environment," said Todd Dagres, general partner with Battery Ventures. "We have looked at a number of technology and infrastructure companies in the VoD space and Broadbus future proof approach is the only one which allows multiple system operators (MSOs) to take full advantage of the hybrid fiber coax (HFC) for the delivery of advanced video services. Batterys investment in Broadbus is very much in keeping with our strategy of investing in best of breed cable infrastructure companies, which is supported by a deep understanding of both the opportunities and pitfalls companies face in the cable industry.
"Broadbus VoD server technology will have profound implications for digital cable network operators, as a platform for providing unparalleled streaming performance for VoD and more advanced video applications," said Santo Politi, general partner, Charles River Ventures. "Broadbus unique server architecture brings together their industry-leading capabilities in live content ingest, video storage and streaming applications to achieve this positioning. We were greatly impressed with the Broadbus ability to generate strong interest from major cable MSOs who plan to test and deploy its servers. Advanced video services over digital cable networks are a major focus for Charles River Ventures and me personally. Broadbus has overcome steep challenges which we understand well, and we look forward to being part of the company's future growth and success."
Formed in 1999, Broadbus Technologies is the leader in a new breed of server technology that enables current and next generation Video-on- Demand (VoD), including its own Television on Demand server technology. These next generation systems enable a broad range of new services that go beyond traditional VoD, while significantly reducing the total cost of ownership, space requirement and power consumption of traditional systems. Broadbus will use the proceeds to complete development and initial deployment of its B-1 line of servers. This fully scalable line of video streaming server systems solves the scalability bottlenecks limiting major cable companies from deploying full-service on-demand video services to more than 70 million households. Broadbus server systems address a segment of the server market that is projected to grow to more than $10 billion by 2007.
About Broadbus Technologies, Inc.
Broadbus Technologies is a leading entertainment infrastructure company that offers a diverse line of robust and massively scalable servers that deliver streaming media in numerous formats, including Video-on-Demand and their own Television-on-Demand (VoD and ToD) systems. Broadbus servers are designed to deliver more than 1,000,000 streams across more than 100,000 hours of high-quality video and audio over cable, fiber and other broadband networks in a very small footprint. Powered by ultra high-density RAID and DRAM-based systems, the B-1 server is one of the most scalable and cost effective servers in the world. Broadbus is a registered trademark of Broadbus Technologies, Inc. More information may be found at www.broadbus.com.
About Battery Ventures
Battery Ventures is a premiere venture capital firm largely focused on early stage technology investments. With a team of more than 60 professionals and nearly two decades of success, Battery has the people, experience and capital to guide emerging technology companies to category dominance. Since 1983, the firm has invested worldwide in more than 130 companies across the communications, software and Internet/e-Business industries. From its offices in Wellesley, MA, and San Mateo, CA, the partnership manages over $1.8 billion in committed capital. For more information, visit www.battery.com.
About Charles River Ventures
Founded in 1970, Charles River Ventures (CRV) is one of the nation's oldest and most successful early-stage venture capital firms with $2 billion under management. CRV is dedicated to helping exceptional entrepreneurs turn their ideas into the next category leaders in the data communications and software & services sectors. To build these companies, CRV provides entrepreneurs with access to a unique combination of financial backing, startup operations expertise and strategic business services. Over the past 10 years, CRV funds have been ranked among the industry's top performers. This superior investment record includes leading companies such as Cascade, Chipcom, CIENA, iBasis, Sonus Networks, SpeechWorks International and Vignette. CRV has offices in Boston, MA and Menlo Park, CA. For more information visit www.crv.com.
About Comcast Interactive Capital
Comcast Interactive Capital (CIC) is a venture capital fund focused on broadband, enterprise and interactive technologies. CIC is affiliated with Comcast Corporation, a diversified global leader in cable, broadband services, telecommunications, electronic commerce, and entertainment. CIC's primary goal is to generate superior financial returns from private equity investments in early-stage technology companies. To achieve this goal, CIC works to foster the success of its portfolio companies by bringing to bear the unique resources, experience, and insight of both CIC and the Comcast family of companies. Additional information is available at www.civentures.com.
Safe Harbor Statement:
This press release may include forward-looking information, including statements regarding strategic direction. These comments constitute forward- looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the information discussed in these forward-looking statements. Among the factors that could cause actual results, performance or achievement to differ materially from those described or implied in the forward-looking statements are general economic conditions, competition, potential technology changes, the lack of anticipated changes in the regulatory environment in various countries, the ability to finance expansion, and the risks inherent in new product and service introductions and the entry into new geographic markets.