British company neoscorp (http://www.neoscorp.co.uk/), the broadband service provider, today announces that it has raised over £20m in a third round of funding. The investment came from existing investors 3i Group, Young Associates, Dolphin Communications Partners the New York venture capitalist, as well as new funding from another investor. This brings the total invested in neoscorp, one of the fastest growing ‘legacy free’ service providers in the UK, to approximately £60m.

According to John Wheeler, CEO of the neoscorp group of companies, neoscorp is now fully funded to cash flow positive, which is expected by the end of 2002. "This funding round represents a vote of confidence in our strategy, our products and our people. We have achieved an annualised revenue CAGR of over 300%, at a time when many other network operators are struggling." "neoscorp and its current investors are continuing discussions with regards to the potential for additional funding from other investors," continued Wheeler.

Paul Murray, the Investment Director who led the deal for 3i said: "We are extremely pleased to be backing neoscorp again. They have an excellent management team that has created one of the leading data networking providers in the UK."

The funding deal which was finalised on the back of 7 months of strong revenues, with record orders achieved in August, will allow neoscorp to deliver new Ethernet services on their Metro and Long Haul networks which will develop during the course of this year.

neoscorp, formerly known as Inter Digital Networks Ltd, owns and operates a fibre network (Neosnet) of approximately 2,000Km around the UK, which was built at a fraction of the hundreds of millions of dollars that other service providers have spent. Network services, ranging from complete lightwaves to Virtual Private Networks (VPN’s), are provided to around 100 carrier customers and 150 corporations and public sector organisations.

Neoscorp