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Axiowave on Track for More Funding

Light Reading
News Analysis
Light Reading
5/7/2002
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Axiowave Networks Inc. has raised $37 million in new funding, and company officials claim it's near to raising another $8 million more to close a total of $45 in its third round.

The size of the round and the fact that the news wasn't volunteered by the company appear to be hopeful signs, although Axiowave's still in pre-product mode and has much left to prove -- in a market that seems clearly down for the count.

The startup's founder and CEO Mukesh Chatter, who gained fame in selling Nexabit networks to Lucent for nearly $1 billion (see Lucent Loses Two Big Names and Lucent Cleans Up Core Routing ), says he's hopeful. "We're just one company, and you can't gauge anything by that, but we are beginning to get good traction. We are making substantially more progress than we were with prospective customers even three months ago."

Much remains to be seen. Axiowave doesn't expect to close its round for another six weeks or so. Chatter says the new round is coming from inside investors that have previously kicked in funding, as well as some outsiders, and matters must still be sorted.

Chatter won't name names, but in the past Axiowave has gotten funding from Madison Dearborn Partners and Soros Private Equity Partners, as well as from a range of other sources, including Chatter himself.

Since its founding in May 2000, Axiowave has maintained a cloak of secrecy only broken intermittently. A month ago, for example, word of a layoff leaked out (see Stealthy Startup Leads With Layoffs), forcing Chatter to acknowledged that Axiowave had discontinued work on an ultra-dense crossconnect switch meant to be part of its product line. About 30 employees were laid off as a result. Chatter said yesterday that the census remains at about 150 and there are no further layoffs in sight.

Sources say Axiowave is making a partially optical multiservice core switch designed to compete with gear from Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Équipe Communications Corp., Nortel Networks Corp. (NYSE/Toronto: NT), and a slew of others (see A New Optical Taxonomy, page 9}).

Chatter says the new funding, when finalized, will be used to create a sales infrastructure to support beta testing and shipment of Axiowave's gear, due out later this year. Money will also be used to continue R&D.

Axiowave will not have a booth at this year's Supercomm 2002 trade show in Atlanta, however. "We'll be there seeing and meeting and talking, but it seems the idea of showing your gear in demos doesn't carry the weight it used to," Chatter says. The only thing that matters is to get a product into the hands of the right customers and get it working, he asserts. The rest will come.

— Mary Jander, Senior Editor, Light Reading
http://www.lightreading.com For more information on Supercomm 2002, please visit: Supercomm Special

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let-there-be-light
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let-there-be-light,
User Rank: Light Beer
12/4/2012 | 10:26:48 PM
re: Axiowave on Track for More Funding
Certainly something "Monumental" about all this is Lucent's stupidity in thinking that a team of 65 people, no matter how good, could build a product in a such a short period of time that would compete with Cisco's router
Route495
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Route495,
User Rank: Light Beer
12/4/2012 | 10:26:38 PM
re: Axiowave on Track for More Funding
ex_nexabit,
Thanks for the insight. excelent post.
Another category of bashers could be the
ones who are still at startups and hoping
to be acquired for a fraction of the amount
that lu paid for nexabit. They are plain jealous.
h
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h,
User Rank: Light Beer
12/4/2012 | 10:26:36 PM
re: Axiowave on Track for More Funding

nexabit and mukesh both are more or less a product of the boom time...LU was stupid to buy something that half worked or even that didn't...The amount of resources it has poured in to salvage it is enormous and even today the software story that they have is pathetic....so, I'm not sure I can agree about the nexabit team ...sure they could be hardworking and slog, but then the through put is sometimes roughly measured by IQ*hardwork...
Steve Saunders
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Steve Saunders,
User Rank: Blogger
12/4/2012 | 10:26:35 PM
re: Axiowave on Track for More Funding
Question: what is the TMX880? Is this the Nexabit product?

Thanks

Steve
h
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h,
User Rank: Light Beer
12/4/2012 | 10:26:34 PM
re: Axiowave on Track for More Funding
yes...its the re-hashed version
realdeal
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realdeal,
User Rank: Light Beer
12/4/2012 | 10:26:33 PM
re: Axiowave on Track for More Funding
Ex-Nexabit, or should I say mrs. Chatter, you are a well spoken woman and did the honorable thing by standing by your man. think you could reserve a domain name for me? I was thinking somthing along the line of:

www.exnexabitnowturnedpopielpo...

cheeeeeeeeeeeers!
jamesbond
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jamesbond,
User Rank: Light Beer
12/4/2012 | 10:26:33 PM
re: Axiowave on Track for More Funding
note from a friend -

Eluminant's CEO just sent a memo to employees
implementing a mandatory 10 hour work day --
plus two bonus Saturdays each month! This lovely package also includes a no-expense paid holiday at work over *BOTH* Memorial Day and 4th of July. If, after months of us riding your ass into the ground, their VC's don't buy that dog and pony
show, you also get a lovely pink
slip and a heartfelt "F**k You".
hrdhtr
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hrdhtr,
User Rank: Light Beer
12/4/2012 | 10:26:19 PM
re: Axiowave on Track for More Funding
Steve, Check it out.
There is much more to it than a "rehash"


http://www.lucent.com/products...
hrdhtr
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hrdhtr,
User Rank: Light Beer
12/4/2012 | 10:26:19 PM
re: Axiowave on Track for More Funding
h, You have no idea what you are talking about.
chechaco
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chechaco,
User Rank: Light Beer
12/4/2012 | 10:26:17 PM
re: Axiowave on Track for More Funding
realdeal, would you know a bit about NX-64000?
Regardless of who ex-nexabit is I stand by each and every word written in the post. You have to work with Mukesh first and then you might come here and tell of your experience.
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