April 24, 2007
VoIP Peering Company XConnect Raises $12 Million in Equity Funding
By Mae Kowalke, TMCnet Associate Editor
peering solutions company XConnect (News
) announced Tuesday that is secured $12 million in Round A of a venture capital funding series. The company said these funds will be used to speed up product development and grow its global infrastructure to meet increasing demand from carriers and service providers.
This round of funding was achieved thanks to the contributions of the following venture capitalist firms:
Accel Partners of England—specializes in partnering with entrepreneurs who build world-class Internet, software and networking companies.
Venrock Associates of the U.S.—originally established as the venture capital arm of the Rockefeller family; today continues funding entrepreneurs and establishing successful, enduring companies.
Grazia Equity of Germany—specializes in early-stage investments in innovative and high-potential companies.
Bridge Capital Fund of Japan (an affiliate of Nikko Antfactory)—specializes in investments in technology-driven international companies.
The international reach of these investors is an indicator of the global presence XConnect has in the VoIP peering market. The company’s peering and ENUM
registry services serve more than 400 service provider and carrier customers, which include Tier 1s, MSOs and PTTs.
XConnect’s Global Alliance, DirectRoute, ENUM Exchange, and Private Federations services enable more efficient, direct routing
of calls to the terminating service provider. This eliminates unnecessary intermediaries, thereby reducing costs and improving call quality while at the same time enabling rich, end-to-end IP
VoIP peering is at the heart of what XConnect does. The company utilizes patent-pending ENUM Registry technology in conjunction with multi-protocol signaling inter-working, peering policy control, VoIP security, and support for traditional and settlement-free commercial models. Carriers and service providers benefit from this centralized solution that does away with the need for a maze of bilateral interconnections and commercial agreements.
“Our federated peering services enable service providers and carriers to deliver compelling new VoIP services and features on a cross-network basis while simultaneously reducing the capital and operational costs inherent in the PSTN
model that it is replacing,” said Eli Katz, XConnect CEO, in a statement
Katz continued: “This investment from a syndicate led by global Tier 1 VCs underscores the importance of peering and registry services in enabling the industry-wide migration from the legacy PSTN to the new generation of IP Communications.”
As part of the Series A funding news, XConnect also announced two new Board of Directors members.
One of the new board members, Kaj-Erik Relander, General Partner at Accel, comes from a firm that contributed to the Series A funding round. The other new member is Natan Tiefenbrun, Chief Operations Office at XConnect.
Relander had this to say about the funding round: “With this landmark financing round, Accel is excited to join the exceptional team at XConnect, and along with Venrock, Grazia, and Nikko Antfactory, to support XConnect in achieving its pioneering vision for federated IP communications.”
To learn more about XConnect’s VoIP peering solutions, please visit the company’s VoIP Peering
channel on TMCnet.com
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