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Funding for startups

Trapeze Swings $34M

Trapeze Networks Inc., a 15-month-old wireless LAN switch startup that only came out of stealth mode in January this year, will tomorrow announce closure of its $34 million Series-B funding.

The round was led by Oak Investment Partners with $12 million, and included the participation of investment banks Trautman Wasserman & Co. and C.E. Unterberg Towbin, VC investors Duff Ackerman & Goodrich and Castile Ventures, as well as Series-A investors Redpoint Ventures, Accel Partners, and Trapeze employees.

Trapeze has now raised a total of $50 million and is one of the most aggressive vendors in the emerging wireless LAN switch market.

“This is probably the biggest round of funding in the enterprise networking space in the last one or two years,” says George Prodan, vice president of marketing at Trapeze. “This is way beyond what others have been raising and it’s a significant up valuation. Investors value the company more now than they did in the last round.”

Read the rest on Unstrung.

— Gabriel Brown, Research Analyst, Unstrung

echo2 12/4/2012 | 11:56:24 PM
re: Trapeze Swings $34M My options are going to make me rich!!!
laserbrain 12/4/2012 | 11:56:23 PM
re: Trapeze Swings $34M "prattling on about an IPO"?
BobbyMax 12/4/2012 | 11:56:15 PM
re: Trapeze Swings $34M Trapeze raking $34 million is difficult to understand, but many VCs have a very dry mouth and they have a lot of money to throw around. Besides Trapeze, there are many other WLAN switch companies such as Vivato, Symbol, Trapeze Networks. There are some other small and insignificant players whose existence is doubtful.

Larger companies such as Lucet, Nortel, and Ericsson are in a position to quality switches.

The WLAN switch market is very strictive. Consequently, there are fewer players in the WLAN switch marlet. Some startups are bound to fail even though the VCs have prepped them and put them in a stealth mode. There is no need for any WLAN switch maker to play tricks.
chipsischips 12/4/2012 | 11:56:14 PM
re: Trapeze Swings $34M For WLAN in the enterprise, the discussion about the IT manager's choices seems to get lost. If I'm an IT manager, and I'm looking at new installations, I have 2 new enticing choices: GigE to the desktop (with workgroup switches in the $50/port range and stackables to be quickly in the $100/port range) or wireless LAN. Hmmmm, do I go with the no-brainer, no-risk-to-my-job GigE choice or the not-quite-ready-for-prime-time WLAN choice?
gea 12/4/2012 | 11:56:07 PM
re: Trapeze Swings $34M "For WLAN in the enterprise, the discussion about the IT manager's choices seems to get lost. If I'm an IT manager, and I'm looking at new installations, I have 2 new enticing choices: GigE to the desktop (with workgroup switches in the $50/port range and stackables to be quickly in the $100/port range) or wireless LAN. Hmmmm, do I go with the no-brainer, no-risk-to-my-job GigE choice or the not-quite-ready-for-prime-time WLAN choice?"

This post might have made sense a year ago. Here on Wall Street many large, conservative companies are already running some WLAN, and more will come rapidly. Basically, IT guys don't seem to worry about the physical layer much. They pretty much assume it works. The only bugbear here is security, and that's not really a problem if the WLAN installers just do a little reading.

As for that $50/port figure, you related that to GbE-to-the-desktop. No way. That cost is on the low speed drops (100M/s) with a couple of 1GbE uplink ports. No way you're going to supply 1GbE to everybody for $50/port.
chipsischips 12/4/2012 | 11:56:00 PM
re: Trapeze Swings $34M "As for that $50/port figure, you related that to GbE-to-the-desktop. No way. That cost is on the low speed drops (100M/s) with a couple of 1GbE uplink ports. No way you're going to supply 1GbE to everybody for $50/port."

We're talking street prices, not list prices - at least D-Link & Netgear are in the $1,500-$1,600 range for a 24-port GigE workgroup switch - see http://www.buy.com/retail/prod... as an example.
Mr. Mutt 12/4/2012 | 11:55:57 PM
re: Trapeze Swings $34M I agree. Working in a small office, wireless is a great solution to be able to be mobile within the office, connect anywhere, etc. This is OBVIOUSLY not something that would replace fixed wire ethernet where you have workstations or desktops.
gea 12/4/2012 | 11:55:55 PM
re: Trapeze Swings $34M "This is OBVIOUSLY not something that would replace fixed wire ethernet where you have workstations or desktops."

Uh...too late. It's already being done at many large companies here on Wall Street as well as elsewhere (didn't 3Com or some company already go completely wireless internally?)

In addition, I'm not seeing why you believe this is 'obvious'...do 10BaseT links now always go directly back to the switch, or are they shared? If they are shared, then I'll likely see much better performance if I go to 802.11g (at 56Mb/s).

(And of course, one large company will have numerous 802.11 clouds, so it's not like 1000 people will ever have to share a single 802.11 link).
chipsischips 12/4/2012 | 11:54:12 PM
re: Trapeze Swings $34M The other killer app that wireline offers is PoE for IP phones (and eventually PCs). The combination of this plus GigE bandwidth will make WLAN in the enterprise a niche (for lobbies and conferences rooms), not the mainstream.
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