BitBand is about to complete its third financing round, amounting to $8 million, reflecting a 50% increase in its value since its preceding round. Ascend Technology Ventures and Portview Communications Partners, a US fund founded by Robin Hacke, made their first investments in the company in recent months. Hacke’s investment portfolio also includes companies like Mempile and FiberZone. Ascend and Portview invested $4.75 million. Sources inform “Globes” that Ascend will invest $2.5 million.
Previous investors in BitBand - Sequoia Capital, Aviv Venture Capital, Challenge Fund Etgar, and Apax Partners also participated in the current round. Apax Partners and Etgar even increased their stakes in BitBand, acquiring Kardan’s holdings in the company for $1.3 million ($800,000 from Apax Partners and $500,000 from Etgar). Kardan’s sale was part of its strategy of selling its high tech investments.
Apax Partners increased its BitBand stake to 26%, which is considered large in high tech. Venture capital funds usually keep holdings of 10-20%.
BitBand develops solutions for communications providers, including video on demand services and software, and management and distribution of content for IP-based video on demand.
BitBand will use the money raised for advanced development of its video on demand solutions, and to expand its global presence. BitBand is trying to cope with dynamic developments in the global IPTV market, which is led by the large telecoms.
Published by Globes [online], Israel business news - www.globes.co.il - on December 27, 2004