Calnex Raises £1M

Packet transport test startup raises £1 million to tackle the market for carrier Ethernet, PBT and T-MPLS assurance equipment

February 6, 2008

2 Min Read

Edinburgh, U.K. -- Calnex Solutions Ltd has secured a £1 million package of investment through Dundee, Scotland-based corporate finance house DC Consulting. Led by Discovery Investment Fund along with a number of individual investors, the package also includes matched equity funding from Scottish Enterprise’s Scottish Co-Investment Fund.

Conceived, founded and driven by Tommy Cook – who spent 20 years with Agilent Technologies – Calnex has developed a range of next generation equipment which will enable manufacturers of telecoms equipment to test, verify and validate their products’ compliance with rigorous new international standards. With the introduction of new technologies in this global market, manufacturers require test equipment imminently: it is estimated that Calnex is two years ahead of its competitors and in pole position to secure a substantial slice of the estimated £125 million market over the coming three years.

“Calnex is an exciting and visionary business which has devoted substantial time in identifying the market opportunity and understanding its prospective customer requirements. We have been delighted to be involved in securing the required funding,” said Angus Hay of DC Consulting.

Since its inception in 2005, Calnex has been supported intensively by the Scottish Enterprise High Growth Start-Up Unit (HGSU) which, in addition to helping Tommy secure an initial SE Industrial Fellowship and subsequent SMART and SPUR awards for Calnex, worked in close partnership with DC Consulting to raise the seed funding from Scottish Seed Fund that provided the platform for this investment round.

Campbell Murray, Head of HGSU, commented: “It has been a pleasure and privilege to support Tommy throughout the start-up phase of Calnex, and very gratifying that high tech talent nurtured in Scotland has remained here to establish what we believe will be a significant global business.”

Calnex founder Tommy Cook said: “The latest package of funding will enable Calnex to move to the next stage of its development very quickly. Our next move is to develop market-ready equipment and to press ahead with sales and marketing, while also developing further products. This is not just about cash: we are also hugely enthusiastic about the expertise we will also be able to access through the equity investors DC Consulting has identified and secured.”

Chairman of Discovery Investment Fund (DIFL) Ken Ingram, who is also a non exec director of Calnex, commented: “As the lead investor in this round of funding, we confident the innovative range of products being developed by Calnex will establish the company as a market leader in the international telecoms test instrumentation market. DIFL is delighted to provide practical support to the highly motivated team led by Tommy Cook, and look forward to assisting the early stage company in meeting the growth challenges.”

DC Consulting specialises in corporate finance and strategic business advice in Scotland. Headed by a board of four directors, it is a fast-growing corporate finance adviser, providing innovative financial solutions for established companies and new technology business opportunities.

Calnex Solutions Ltd.

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