Funding for startups

Tiara Doubles Funding

SAN JOSE, Calif. -- Tiara Networks announced today that it has completed its next round of funding to secure an additional $22.5 million, which brings the total financing to $55 million since the company's founding in late 1997. Sands Brothers Venture Funds led the round, which also involved 100 percent participation of existing investors including Bowman Capital, Interwest Partners, Mayfield, New Enterprise Associates, and Worldcom Ventures; and new investors Comdisco, Inc., Dain Rauscher Wessels, NetNet Ventures, and Schoffstall Ventures.

"Tiara Networks is the right company at the right time," said Howard Sterling, chief operating officer of Sands Brothers Venture Funds. "Today, bandwidth is available. The crucial need is to manage and monitor the high-bandwidth needs of large and small network subscribers and increase services in a manner that will save money, increase reliability for purposes of QoS and SLAs, and provide integrated capabilities at the edge, the fastest growing part of the network."

drone387 12/4/2012 | 8:38:43 PM
re: Tiara Doubles Funding 10 VCs and only $20M?!?! I checked their press releases and this is the fourth round. Given the way VCs are extracting more equity now, I bet they had to give away most of the company to get the $$$. But they live to fight another day so it was worth it from their viewpoint.
hitech_watcher 12/4/2012 | 8:38:28 PM
re: Tiara Doubles Funding Doesn't look so hot !!!!???? Let it be. While most of the so-called hot companies in "cold" water, struggling to maintain the head above the water, and VCs pulling the money out desperately to take whatever "dollars" that is left, its not bad to see 10 VCs still believing in this Company.
May be the time of "fluffs" and "hypes" are behind us and companies delivering "useful technologies" and not the "pipe dreams" will always be around. After all, they sell products and generate "revenue" and not "dreams".
You seemed to be ignorant of market realities and what "VCs" look for during the "bullish" and "bearish" times. While your judgement does not affect thier investments, I have a strong reason to believe that you were a tiny part of the big crowd which took the Nasdaq to 5000!!! :)
I mean, seemingly a lot of "tech" awareness but poor or little investment sense!! Next time around, when you see some thing not so "hot", check to see if the "hots" were still around. Probably, you may not, for the next 6 to 12 months and will adjust to the reality that the time has come for your "perception" to change !!!

- Hitec_watcher
drone387 12/4/2012 | 8:38:26 PM
re: Tiara Doubles Funding Let's compare to the funding round for Teraburst posted above it:

Tiara Teraburst
----- ---------
Round #: 4 2
VCs: 10 5
Money: $22M $32M
Total$: $55M $51M

Teraburst took half the VCs to raise 50% more money. The numbers do not indicate strength.

drone387 12/4/2012 | 8:38:23 PM
re: Tiara Doubles Funding Ten VCs are normally associated with $50M+ rounds of financing, not $20M. The question is whether the VCs were loath to risk more money on this company regardless of the dilution (hence the need for 10 to raise the necessary cash) or did the company deliberately spread the stock around for some reason. If one investor is a Wall Street company known for tech IPOs and the rest are it's know friends and associates, I would say that this is a good sign. Tiara is over 3 years old, has products out, and probably would have filed for an IPO by now if the NASDAQ was still going gangbusters. If they're one of the 80% startups that don't make it, this could be a sign that this year is critical to survival. Point out the IPO firm and you win (& so do they)!
pluckon 12/4/2012 | 8:38:23 PM
re: Tiara Doubles Funding "If one investor is a Wall Street company known for tech IPOs and the rest are it's know friends and associates, I would say that this is a good sign."

I used to think this way, too, until the past year or so when I've seen so many failures of prominently backed ventures.
hitech_watcher 12/4/2012 | 8:38:23 PM
re: Tiara Doubles Funding Do not see any rationale in your comparison. You are missing a very important point here. Do you know how much of the "company" was given in return for the investment? I am sure you don't unless if you are an insider. With out this metric, your comparison is akin to apples and oranges.

drone387 12/4/2012 | 8:37:25 PM
re: Tiara Doubles Funding From Red Herring: CEO Says It Was An Up Round!

San Jose, CA
ROUND: 4th
DESCRIPTION: Provides multi-megabit broadband access routers.
LEAD INVESTOR: Sands Brothers Venture Funds
OTHER INVESTORS: Bowman Capital; Interwest Partners; The Mayfield Fund; New Enterprise Associates; Worldcom Ventures; Comdisco; Dain Rauscher Wessels; NetNet Ventures; Schoffstall Ventures.
THE HERRING TAKE: Tiara Networks is going after what's projected to be a $20 billion market in 2004. The problem is that Cisco Systems now has 90 percent of it. Tiara is hawking an "edge" router that is smaller, cheaper, and faster than the competing device from Cisco, CEO Dan Palmer says. Many of the routers Cisco sells are the size of a refrigerator, but, says Mr. Palmer, Tiara's router is the size of a microwave. That's important, because space is either tough to come by or expensive in locations where the device is deployed, like building basements and co-location facilities. The routers serve to "aggregate" the traffic of business customers, receiving and forwarding information at different points in the network, while controlling the quality of service and the security of the transmission. Tiara wants to do for the "edge" router market what Juniper Networks did for the "core" -- that is, take a big chunk away from Cisco. Though it just started shipping gear a year ago, Tiara already has 40 customers, including Cable & Wireless, Earthlink, and PSInet. Mr. Palmer says the company's post-money valuation went up "substantially" in this round, but declines to give the dollar amount. With 140 employees, the firm's gross burn rate is around $2.5 million per month. Profitability is about one year out, Mr. Palmer says. --S.S.

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