Quantenna, which has now raised more than $169 million and has yet to turn a profit, will use the new funds to expand its 802.11n technology and to target new markets. The company, founded in 2006, claims its current 802.11n 4x4 MIMO platform can deliver speeds of 40 Mbit/s at distances of more than 200 feet and penetrate concrete walls. Motorola Mobility LLC , Netgear Inc. (Nasdaq: NTGR), Sigma Designs Inc. (Nasdaq: SIGM) and Technicolor (Euronext Paris: TCH; NYSE: TCH) are among vendors that have integrated its chipsets. Telefónica SA (NYSE: TEF) is a strategic investor. (See Quantenna Touts Wi-Fi Video Chip.)
Among lead investors, Rusnano will pitch in as much as $40 million, while the Sequoia Capital Growth Fund will add $20 million. All of Quantenna's existing major investors, along with another new investor, Bright Capital, are also participating in the new round.
Why this matters
The big cash infusion comes as consumers gravitate to Wi-Fi to feed video to tablets, phones and other connected devices to avoid cellular connections that rapidly eat away at monthly data consumption caps. MSOs and other pay-TV providers are also starting to use high-end Wi-Fi chips to shuttle managed HD video services wirelessly in the home via gateways and set-top boxes, viewing them as a complement to or potential replacement of wired home networking platforms such as Multimedia over Coax Alliance (MoCA) , HomePlug Powerline Alliance and Home Phoneline Networking Alliance (HomePNA) . (See Mobile Bubble, Mo' Trouble.)
The new round should also give Quantenna more ammunition to use against Broadcom Corp. (Nasdaq: BRCM) and startups that specialize in video-grade Wi-Fi silicon such as Celeno Communications .
- Celeno: A Little Frosty on MoCA
- Celeno Joins Liberty's Video Gateway Lineup
- AT&T Cuts the Cord
- MoCA Is Go for 2.0
— Jeff Baumgartner, Site Editor, Light Reading Cable