Israeli start-up Flash Networks Ltd. has completed raising $15 million in its fourth financing round. The round was closed fairly quickly, and was led by HarbourVest Partners and Argonaut Partners LLC of the US, alongside existing investors, Israeli funds Challenge Fund - Etgar, Evergreen Venture Partners, Giza Venture Capital.
Founded in 1996, Flash Networks has undergone numerous incarnations and upheavals. The company’s position now seems good, with a long list of large customers, an impressive and growing revenue turnover, and plans to go public within two years.
Flash Networks develops solutions for optimizing and speeding up data traffic on wireless networks and improving user experience of premium services offered by communications providers.
Like many other communications equipment companies, Flash Networks was founded before the high-tech crash, and suffered hard times during the downturn. In 2003, it merged with Adjungo Networks in an effort to prevent the closing down of both companies. The drought appears to have been over for the past 18 months.
Flash Networks CEO Liam Galin says the company is struggling to meet demand for its products. “The company could raise substantial capital, which will enable it to expand its sales efforts. We’ve strengthened our financial foundations and won the support of both existing and new investors whose stamp is a mark of honor. The financing round will enable us to continue to grow and meet demand.”
Flash Networks’ customers include numerous European communications providers, including Vodafone Group (NYSE, LSE, FSE: VOD), T-Mobile and Orange. The company is about to announce another large European customer. Galin says, “There are 400 communications providers and our product is installed at 40 of them. We intend to reach many more. Understanding our customers changed our business model. We aim to sign mega-deals with both existing and new customers.”
“Globes”: What’s a mega-deal?
Galin: “The first step will be $3-5 million deals, followed by $10-20 million deals. We aim to become a company with a $100 million sales turnover within 18 months.”
How does Flash Networks’ future look?
“The new investment will enable us to expand our workforce and will take us to an IPO.”
Published by Globes [online], Israel business news - www.globes.co.il - on June 13, 2006
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