Globes, July 6, 2004
Broadlight scores $4.4 million from venture fund Azure, AFC
|Ramat Gan-based startup Broadlight recently raised $4.4 million from the U.S. venture capital fund Azure Capital Partners and AFC, which is also one of its customers. A unidentified strategic investor that makes silicon wafers also put up money, Haaretz has learned.
Altogether, Broadlight raised $17.9 million in its latest financing round, which it completed in three stages. In February, the company raised $11.5 million from Star Ventures, Delta Ventures and Israel Seed Partners, which came in as a new investor. A month later, it scored $2 million from Siemens' venture capital arm, and now it is closing the round with $4.4 million more.
Since its establishment, Broadlight has secured $28 million from investors. It means to use the proceeds for development and marketing, and to recruit 12 new workers by year-end.
Broadlight, established in 2000, develops solutions to rapidly integrate BPON - broadband passive optical network - components.
Its products include a transceiver component that converts light waves into electronics. Broadlight also makes components and software. Its components are embedded in communications boxes that use optic fibers to connect between communications switches and the customer's home.
These boxes, situated at the customer's home and at the service provider's switching location, are produced by Broadlight customers, such as ECI Telecom, Siemens, AFC, and Ciena.
Broadlight general manager Raanan Gewirtzman says that AFC recently won a Verizon tender to supply optical communications solutions for the last mile. Analysts believe that via AFC, Verizon is building infrastructure to hook up about a million households, and plans to double that infrastructure next year.
BellSouth, SBC Communications and Sprint have also issued giant tenders for last-mile hookups. Some of the companies bidding in these tenders are Broadlight customers.
The startup is expected to post sales of $6 million to $7 million this year.