Universal broadband solutions company Pedestal raises $20M in a Series C round co-led by Duff Ackerman & Goodrich

January 22, 2004

3 Min Read

FREMONT, Calif. -- Pedestal Networks, developer of innovative universal broadband solutions, today announced it has raised $20 million in Series C funding, bringing the company's total financing to $34 million. The up-round was co-led by new investor Duff Ackerman & Goodrich LLC (DAG LLC) as well as all existing investors, including Benchmark, Doll Capital Management, and Skymoon Ventures. Pedestal also announced that John Cadeddu, partner at DAG LLC, will join the Pedestal Board of Directors. Pedestal plans to use the additional capital to expand sales and marketing and roll out the next-generation of the Universal Broadband Server (UBS) product family.

"As an investor, it is our responsibility to be extremely selective about the companies we fund," said Cadeddu. "Pedestal is only the second telecommunications company DAG has invested in within the past three years. Pedestal has all of the right ingredients for success - a seasoned management team with the experience and knowledge to win in the broadband market; a unique market opportunity where the return on investment is compelling; an innovative technology solution to a simple problem; and a tremendous opportunity to become the dominant player in providing cost-effective DSL."

"One of my primary goals when I joined Pedestal last fall was to raise additional capital while preserving the valuation of the company," said Greg Daily, CEO of Pedestal Networks. "It's very rare in today's telecommunications environment to raise such a significant amount of capital in such a short amount of time. Most important, however, we were able to receive a significant increase in valuation for the company, which began shipping its Universal Broadband Server (UBS) to customers in October."

Pedestal Networks' UBS is the first line-powered Digital Subscriber Line Access Multiplexer (DSLAM) designed to eliminate the technical and economic barriers of carrier DSL. The UBS combines patent-pending power technology, automated provisioning, and an environmentally hardened and waterproof architecture to enable comprehensive deployment of standard 1.5 Mbps Asymmetric DSL (ADSL) services in areas previously unreachable by carrier networks-on long-loop copper pairs and behind legacy Digital Loop Carriers (DLCs). The UBS enables carriers to offer universal broadband services without the expense of new right-of-way access, fiber trenching, local power, or environmental conditioning. The UBS is also the first remote DSL solution that can be pre-provisioned to support Instant-On Service Activation, eliminating the need for carrier truck rolls for service turn-up once the system is installed.

"By eliminating the technical and economic barriers of DSL, Pedestal is allowing carriers to utilize their existing copper infrastructures and make broadband a reality for consumers," said Alex Balkanski, general partner at Benchmark. "Pedestal's UBS extends the reach of 1.5 Mbps ADSL services from the current limit of 12,000 feet to as far as 50,000 feet from the central office (CO). Pedestal is already making traction with several independent carriers, and we believe that the company will continue to lead the way in providing ubiquitous broadband."

Pedestal Networks Inc.

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