Ellacoya Gets $13.5M More

Ellacoya Networks attracts new investors in $13.5M financing

July 18, 2005

2 Min Read

MERRIMACK, N.H. -- Ellacoya Networks, Inc., a leading provider of carrier-class intelligent bandwidth management systems for broadband IP networks, today announced it has raised an additional $13.5 million in venture capital funding. The financing was led by new investor BCE Capital, the venture arm of Bell Canada Enterprises, and also included Canaan Partners as a new investor. Existing investors Atlas Venture, Flagship Ventures and Lightspeed Venture Partners, also invested in the round.

   "Internet bandwidth and traffic management is a very exciting and promising market, helping broadband service providers ensure customer satisfaction, profitably differentiate their services and develop new sources of revenue for the future," said David McCarthy, Managing Director at BCE Capital. "We concluded that Ellacoya had the strongest, most scalable carrier-class product in this field and found a growing customer base that confirmed it. We are pleased and excited to be joining the team." As a result of the investment, David McCarthy will join Ellacoya's Board of Directors.

   The Ellacoya IP Service Control System enables application traffic that has specific bandwidth and latency requirements to be prioritized on a per-subscriber basis, ensuring the application's proper performance regardless of the overall traffic load on the network. It allows the broadband service provider to first understand which applications are being consumed by what percentage of subscribers and then to control traffic based on that data in a dynamic and automated way. In doing so, the Ellacoya system enables mainstream applications to be automatically prioritized for customer satisfaction, and also provides a platform for the delivery of tiered service plans on an application and subscriber-specific basis.

   "Ellacoya has game-changing technology and products that are empowering service providers to save significant operations costs and move beyond offering basic Internet services to delivering value-added, premium services that enable profitable new business models," said Mark Mangiola, Venture Partner at Canaan Partners and veteran broadband industry executive. "We are excited about this company. With its product development and market execution successes, as well as a strong management team, Ellacoya is the indisputable leader in this fast growing market segment."

   The new funding will be used to accelerate product development schedules and to accelerate sales and marketing expansion worldwide. Ellacoya's IP Service Control System is deployed worldwide in over 75 service provider networks, managing millions of subscribers. Ellacoya has system-wide deployments at Tier 1 broadband providers in each global region, including announced deployments at Shaw Communications in Canada and @NetHome in Japan.

Ellacoya Networks Inc.

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