Lantern Raises $15 Million

Mohr, Davidow Ventures leads first round for 10-Gig Ethernet startup

March 27, 2000

3 Min Read

SUNNYVALE, CA--Lantern Communications, a pioneer in the use of the 10 Gigabit Ethernet, announced that they have completedtheir first round of funding. Initial funding was led by Mohr, Davidow Ventures (MDV), an early-stage venture capital firm with special expertise innetworking and communications. Also included in this round is high-profile private investor, Jim Jordan. Lantern is a leader in providing optical switchingplatforms for public data communications networks. Together, Lantern and MDV brings years of combined expertise in optical networking and operationalexperience in creating successful IPOs.

Founded in mid-1999, Lantern Communications has over 40 engineers working on equipment that is expected to ship by year end. Leading carriersand a number of smaller service providers are currently investigating the use of Lantern’s equipment in their networks. The market for access products isexpected to be over $4.2 billion annually in North America alone by 2001 according to projections by RHK, a consulting firm specializing in advancedtechnologies for the public telecommunications network.

Lantern Communications is addressing the fundamental problem of meeting the escalating demand for greater Internet bandwidth. The Lanternarchitecture enables Ethernet Access to the Internet and facilitates the convergence of the LAN and WAN environments. Ethernet connectivity is nearlyubiquitous. Over 50 million devices use it for connectivity today. Lantern’s architecture also takes advantage of the rapid deployment of fiber optics aswell as advances in Wave Division Multiplexing and switching equipment that enables greater bandwidth delivery to homes and businesses worldwide. The market acceptance of Cable Modem and DSL technologies for delivering higher speed access also increases the need for Lantern’s products.

“Lantern’s technology will accelerate the LAN/WAN convergence by providing Ethernet Access on the edge and resilient transport in the core. Thiswill revolutionize how data and voice are carried and provided to end subscribers," said Nader Vijeh, CTO of the company.

“We believe we can fundamentally change the economics of service delivery by simultaneously enabling lower costs and much higher data rates,” saidNasser Hiekali, CEO of Lantern Communications. “Mohr Davidow is well known for successful development of early stage communications companies,including Brocade, Telocity, Optical Networks, and Jetstream Communications. Jon Feiber of MDV will sit on our board and his experience with thesecompanies and others brings a great deal of value to Lantern,” he continued.

Also joining the board of Lantern Communications is Jim Jordan. Mr. Jordan was one of the founders of Ungermann-Bass and was most recently, theChairman, CEO, and President of Kalpana, Inc., the pioneer company in developing Ethernet switching. Mr. Jordan is also on the Board of Directors for anumber of rapidly growing technology companies including ONI Systems, Jetstream Communications, Starburst Communications, and SiteRock.

“We're very impressed with Lantern’s management team and their vision for this explosive market,” said Jon Feiber, managing partner for MDV. “Theyhave developed an impressive architecture that allows business and home subscribers to access the Internet and other networks at speeds thousands oftimes faster than can be achieved with other technologies. This technology will benefit end users with high reliability and performance.”

Rounding off the Lantern executive team are former executives from Fore Systems and AMD with a successful history of building carrier classnetworking equipment.

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