The company said that it will use the new influx of funds to support its "rapidly increasing" installed customer base as well as new Long Term Evolution (LTE) and 3G network optimization projects with operators in Europe, Asia/Pacific, and the U.S.
Stoke also noted that it has delivered more than 200 units of the Stoke Session Exchange 3000 gateway -- one customer for which is NTT DoCoMo Inc. (NYSE: DCM) -- since it was commercially produced in late 2008. (See Stoke Lands LTE Gig at DoCoMo.)
The latest funding round was led by new investor Focus Ventures , which, Stoke points out, was a late-stage investor in Starent, the mobile packet core specialist that Cisco Systems Inc. (Nasdaq: CSCO) acquired for $2.9 billion in 2009. Existing investors also participated in this round, including DAG Ventures Management , Integral Capital Partners , Pilot House Ventures , Net One Systems Co. Ltd. , DoCoMo Capital Ltd., Mobile Internet Capital, Inc, Sequoia Capital , and Kleiner Perkins Caufield & Byers . (See Cisco to Buy Starent for $2.9B.)
Why this matters
Stoke appears to be on a roll, thanks to the surge in mobile data traffic. The company said it expects triple-digit revenue growth in 2011 and that its revenues in 2010 were four times higher than in 2009.
To raise $17 million in the current economic climate is meaningful for Stoke, which was founded in 2004. The funding goes some way toward validating Stoke's strategy to provide data offload options for increasingly congested mobile broadband networks. The company has positioned itself to alleviate capacity constraints on 3G core networks, while also offering an aggregation gateway for LTE and femtocells.
And Stoke -- a Light Reading Leading Lights finalist -- has a distinct role in NTT Docomo's LTE network, which launched in Japan last month and is one of the world's first commercial LTE networks.
With much focus recently on the need for mobile data offload, Stoke has been busy.
- Who Makes What: LTE Evolved Packet Cores
- NTT Docomo Launches LTE Service
- Stoke Adds Smarts to LTE
- Leading Lights Finalists: Private Company of the Year
- Stokin' Up Mobile Data Offload
- MWC Preview: Data Offload to the Rescue
- Stoke Scores Second DoCoMo Deal
- Stoke Secures $15M Funding
— Michelle Donegan, European Editor, Light Reading Mobile