FREMONT, Calif.-Investors continued to get behind nascent WiMAX technology, with two service providers announcing successful funding rounds.
California-based fixed-wireless Internet provider NextWeb said it snared $3.5 million in Series E equity financing and a revolving line of credit from Silicon Valley Bank. Kaiser Permanente National Ventures and Saints Capital initiated the round for NextWeb, which has accrued $10 million in financing since its founding in 1999.
The company serves more than 2,000 enterprise customers with high-speed Internet service through its pre-WiMAX network. In May, NextWeb launched mobile broadband service in Las Vegas. The subscription-based offering is available to 35,000 businesses in the metropolitan area, the company said.
“This funding further strengthens our efforts to provide the most cost-effective, high-quality Internet service for businesses in California and Nevada,” said Steve Button, NextWeb’s chief financial officer, “and allows us to carry out additional acquisitions and organic growth.”
Meanwhile, U.K.-based network operator Telabria said it garnered $1.8 million in first-round funding from private and institutional sources. The company plans to use the cash to develop its WiMAX-class network to deliver data and voice services in southeast England.
“This round will allow us to expand our wireless network services and develop our products to meet increasing demand,” said Charles Blount, Telabria’s CFO.
The company said it hopes to raise additional funds in the coming months.
