Stealthy Zeugma Pockets $22.5M

Vancouver-based startup Zeugma Systems Inc. announced a $22.5 million B round of financing today, taking its total funding to $38.25 million. (See Zeugma Raises $22.5M, Zeugma Scores $2.25M, and Zeugma Gets $13.5M for Mystery Box.)

The round was led by a new investor, Israeli firm Vertex Venture Capital.

So what's the money for? That's currently the, er, $38.25 million question, as Zeugma is still officially in stealth mode and not talking about its product. Its Website says it's doing "intelligent solutions for next generation broadband networks," if that narrows it down for you.

It seems, though, that the company is developing a packet-aware broadband subscriber management router -- and that's a good place to be just now, with management of traffic, resources, and subscribers among the hottest development areas in the telecom sector. (See AlcaLu Identifies Deep Packet Potential and IP Traffic Smarts Hit Berlin.)

Which is why Zeugma sits proudly in our Top Ten New Startups list.

Justin Currie, Zeugma's VP of finance, isn't giving anything more away today, not even a headcount level. The company has been hiring, though, and has outsourced some development work to India, though the offshore staffers account for less than 10 percent of the company's staff. (See Zeugma Expands Team.)

So when is Zeugma coming out of the technology closet? Currie says it'll be during the current funding period, which is the next 15 months, though some announcements will likely be made during the next four to five months.

— Ray Le Maistre, International News Editor, Light Reading

bollocks187 12/5/2012 | 2:57:21 PM
re: Stealthy Zeugma Pockets $22.5M I would say they regard themselves as a top "Canadian" startup because they have raised a chunk of cash. $22.5M is not bad for a networking company.

In addition I would say they have an experienced management team
azacubane 12/5/2012 | 2:57:21 PM
re: Stealthy Zeugma Pockets $22.5M There's something I'm missing here. How can a company that won't tell anyone what it is doing, be a Top Ten Startup? Shouldn't one of the criteria be what the company is actually doing, as disclosed by itself, rather than rumor?

Recruiter X 12/5/2012 | 2:57:19 PM
re: Stealthy Zeugma Pockets $22.5M In any start-up identifying and attracting the very best talent is critical to the organizations success. Zeugma Systems did not go cheap nor rely on older and less flexible models for their recruitment strategy. They hired an independant professional recruiter - Mark Strong from VanJobs.com in Vancouver. Zeugma has attained zero attrition and has met every staffing target on time and within budget. Money well spent in a market that takes no prisoners.
Pete Baldwin 12/5/2012 | 2:57:11 PM
re: Stealthy Zeugma Pockets $22.5M Regarding what made Zeugma a "top" company .... the list in question was for top *new* startups, those that were just a year or two old, roughly. We built that list realizing that many of the candidates weren't talking about their full product/business plans yet, IIRC. We'd heard some good things about Zeugma through the grapevine, and deemed them worthy.

Looks like it was a decent pick, so far.
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