• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

LVL7 Closes $21 Million Funding Round; Capital Infusion to Fuel Expansion of Networking Software Product Portfolio and Customer Base

Posted on: Wednesday, 9 February 2005, 09:00 CST

LVL7 Systems, Inc., the leading provider of production-ready networking software to communication system manufacturers around the world, has completed a $21M capital expansion. Leading the oversubscribed Series C financing was Silicon Valley-based venture capital firm USVP. The funding round also included participation from Lighthouse Capital Partners and LVL7's previous investors: The Carlyle Group, Gabriel Venture Partners, H.I.G. Ventures, and Research Triangle Ventures.

The latest funding will allow LVL7 to continue ambitious growth plans centered on expanding the feature sets and capabilities of its FASTPATH(R) software portfolio, and adding the internal resources and infrastructure enhancements necessary to service a growing customer base of top tier original equipment manufacturers.

"We're pleased the venture capital community recognizes the strength of LVL7's current market position and the customer value inherent in our production-ready networking software," said Al Bender, LVL7 CEO. "Adding a top-tier VC firm with a track record of success such as USVP to our investor list is an indicator of LVL7's strong business fundamentals and a testament to our widespread product adoption across the enterprise and carrier infrastructure markets."

Since its founding five years ago, LVL7 has redefined the development model for next-generation Ethernet communication systems. LVL7's FASTPATH software allows equipment manufacturers to reduce their reliance on internal software development and test organizations and decrease expenses, risks and timelines. As a result, innovative networking products get to market faster and at lower cost.

Today, LVL7 has an impressive customer base of 40 system manufacturers in the global communications industry, many of which are in the top tier of their market or technology segment. To date, the company has achieved contract design wins to enable more than 90 unique product models with FASTPATH software, and is on track to continue its annual revenue-doubling performance.

Christopher Rust, general partner with USVP and newly-named to the LVL7 Systems board of directors commented on the relationship. "The networking equipment industry is transitioning from vertical integration to horizontal segmentation out of necessity as it continues to mature. LVL7 is playing a transformational role by accelerating this move to a more efficient industry structure, and is poised to be the dominant supplier of production-ready Ethernet-based networking software solutions. USVP is pleased to be an investor in LVL7, and looks forward to working closely with the Board and management team to create value for all LVL7 stakeholders through thoughtful deployment of this working capital."

About LVL7

LVL7 Systems, Inc. creates production-ready networking software that enables communication system manufacturers to reduce development costs and deliver IP/Ethernet products to market faster. Integrated with the industry's leading silicon and embedded operating systems, the company's FASTPATH(R) software portfolio spans the enterprise, access, metro edge, and wireless marketplaces. LVL7 is a privately held company located near Research Triangle Park, North Carolina. For more information, visit www.LVL7.com.

About U.S. Venture Partners

USVP is a Silicon Valley-based venture capital firm dedicated to helping entrepreneurs build world-class companies that are leaders in their respective industries. USVP focuses on early-stage opportunities in key sectors that include: digital communications and networking systems, Internet and commerce infrastructure, semiconductors and optical components, and software for enterprise and technical applications, medical devices and biopharmaceuticals. Since its formation in 1981, USVP has invested in more than 370 companies. In aggregate, USVP has helped create about $75 billion in stock market value. For more information, visit www.USVP.com.

About Lighthouse Capital Partners

Lighthouse Capital Partners is an independent partnership providing debt and equity financing to early-stage technology companies backed by top-tier venture capital firms. They focus on giving startups the flexible support and unwavering commitment needed to build market-leading companies. For more information, visit www.lcpartners.com.

About The Carlyle Group

The Carlyle Group is one of the world's largest private equity firms, with more than $18.9 billion under management. With 26 funds across four investment disciplines (management-led buyouts, real estate, leveraged finance, and venture capital), Carlyle combines global vision with local insight, relying on a top-flight team of nearly 300 investment professionals operating out of offices in 14 countries to uncover superior opportunities in North America, Europe, and Asia. For more information, visit www.CarlyleGroup.com.

About Gabriel Venture Partners

Gabriel Venture Partners, with offices in Silicon Valley and the Mid-Atlantic Region, is a hands-on venture capital firm that provides in-depth operating, technology and management experience to maximize company value creation from the initial funding through every stage of a company's growth. Founded in 1999, Gabriel Venture Partners has $260 million under management and focuses its investments within specific sectors of information technology, including Wireless, Disruptive Technology Components, Infrastructure Software & Systems, and Enterprise Software & Services. For more information, visit www.GabrielVP.com.

About H.I.G. Ventures

H.I.G. Ventures is one of the largest and most successful venture capital firms in the Southeastern United States. Dedicated to helping talented entrepreneurs build market-leading businesses, H.I.G. Venture's investment activity is focused on early and growth stage technology companies. Its most recent venture capital fund has total capital of over $250 million. In addition, its affiliate, H.I.G. Capital, manages more than $1.5 billion of equity capital dedicated to investments in private equity and management buyouts. For more information, visit www.higventures.com.

About Research Triangle Ventures

Research Triangle Ventures is a seed and early stage venture capital fund based in Raleigh, NC. It invests in emerging, high growth companies located in Research Triangle, North Carolina and surrounding areas. Research Triangle Ventures contributes a unique blend of experience and perspective, as well as an outstanding network of advisors and professional resources.

LVL7, the LVL7 logo, and FASTPATH(R) are trademarks of LVL7 Systems, Inc.

Source: Business Wire

More News in this Category