Aurora Networks doubles its funding
Venture capital may be difficult to come by for start-up vendors stuck in the R&D stage of development, but companies with relatively tested new product are finding capital a bit easier to come by.
Aurora Networks, makers of advanced optical transport gear intended to leverage current HFC cable plant architectures, announced that it has finalized a round of Series B funding totaling almost $30 million. The latest round was led by Sprout Ventures, an affiliate of Credit Suisse First Boston, and included additional funding from previous investors Battery Ventures, Castile Ventures and ComVentures.
"In this kind of climate right now, one of the real positives was we were really oversubscribed. We didn't want to initially raise as much money as we did, but people wanted to join," explains John Dahlquist, a spokesperson for Aurora Networks. "VCs today are looking for companies that have been able to attract some good customers and have visibility of what the future looks like, versus just a hope and a prayer."
To date, Aurora Networks has raised almost $60 million in funding. The latest round of funding will go to increasing the company's production capabilities in an effort to fill orders already placed by select North American MSOs. Aurora began shipping product at the end of last year, but order filling has ramped up during the second quarter of this year, Dahlquist said. Aurora has standing orders for gear in three major systems with one unannounced major MSO, and is a supplier to Liberty Media's upgrade of systems in Puerto Rico.