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Financial

Turin Trolls In $50M

Petaluma, California-based Turin Networks Inc. said Wednesday that it has raised $50 million in new funding, bring its total investment to date to about $122 million. The multiservice provisioning platform maker also says it has commitments for another $8 million in equity that it expects to receive shortly (see Turin Turns Up $50 Million).

“This funding round should take us to cash-flow positive,” says Turin CEO John Webley. “That’s, of course, assuming there aren’t another five Global Crossings about to happen.”

The company announced its multiservice switching product just last week (see Turin Turns Up). It says that by using its platform, service providers can deliver OC3 to OC192 Sonet, DS1, DS3, and gigabit Ethernet services from the same box.

Turin is in trials with one RBOC and two IXCs, but says it expects the bulk of its business to come from smaller, independent telephone companies -- such as Texas-based Grand River Communications Inc.

Webley says he targeted the same types of companies when he was at Advanced Fibre Communications Inc. (AFC) (Nasdaq: AFCI). He says Turin’s received five purchase orders from independent carriers, two of which are running live traffic over its box. “My whole business case is based on that for the next two years, we’ll survive on [the independents] and break even."

Turin is taking aim at a market that’s flooded with old and young competitors alike. For example, it faces off against Ocular Networks, which has established RBOC relationships through its new parent company, Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA). But Turin insists it’s up for the challenge, having paid close attention to the RBOCs' need for Sonet services and Ethernet switching capabilities. Also, Webley notes that Tellabs' history of making a profit from its acquired companies “isn’t stellar.”

Turin’s new investors include Doll Capital Management (DCM), RWI Group, Tako Ventures, and individual investor Donald L. Lucas, whose son, Donald A. Lucas, runs RWI. Other Turin investors include Sequoia Capital, Baker Capital Corp., Van Wagoner Capital Management, Morgan Stanley Dean Witter & Co., AFC, Pivotal Asset Management, and several individuals, such as Don Green, AFC's chairman, and B.J. Cassin, an early AFC investor.

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
yesteryear 12/4/2012 | 11:00:14 PM
re: Turin Trolls In $50M Hmmm...

A startup that can count its product offerings on one hand? That doesn't sound too bad. Maybe they can actually deliver that rather than promising the moon as has become the custom over the last few years. No one has delivered the moon yet.

I can remember when a startup had to concentrate on doing just one thing REALLY well. Maybe we are returning to more rational days. so, how many hands would you like to use to count the number of projects in your next startup? I'd suggest that if it is more than one, maybe you should get out of startups and stop contributing to giving them a bad name.

Just my own wacky idea.
sdsmith 12/4/2012 | 11:00:26 PM
re: Turin Trolls In $50M I think its interesting what vendors consider Live Traffic... Bah... Its also interesting to wonder what interfaces they have today. Not on slides but actual physical interfaces available today for deployment. I have a sinking suspicion that I could count what they have Beta ready on one hand. Its amazing what happens when one startup makes it, the purse strings get looser for the others.
Of course another question is stability. From what I've heard of "Testing" on this platform it is VERY immature, which of course is to be expected for something so young.
Hmm, this last part is actually funny... They listened to RBOCs to help deliever Ethernet? Come again? Do they even have OSMINE complete... The answer is no. Last I checked Telcordia didn't have ethernet provisions built into TIRKS. But I could be wrong... Oh well time will tell maybe this could follow Redback's footsteps which followed Cerents... A complete success story 6 months behind the leader. Then again maybe not.
ntinsider 12/4/2012 | 11:00:31 PM
re: Turin Trolls In $50M Is there anyone out there who is not building one of these boxes!!
SS 12/4/2012 | 11:00:34 PM
re: Turin Trolls In $50M Does anyone know what Coriolis Networks is upto these days? They got around $32M recently and are building more or less a similar (multi-service box targetted to metro core and metro egde) to what Turin is building and it has been there since 1999.

-SS.
The_Holy_Grail 12/4/2012 | 11:00:38 PM
re: Turin Trolls In $50M Does anyone know the post-valuation of this company with their 'kick-ass' product?
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