February 3, 2003 - FHP Wireless, Inc., announced today that it has closed its Series C equity financing with a total amount of $8.3 million, bringing the total amount of financing raised to $13.5 million. The latest financing was led by Voyager Capital and included investments from all previous investors including Benchmark Capital, Boston Millennia Partners and Hanna Ventures. FHP Wireless will use the new capital to fuel its growth in the metro-scale Wi-Fi networks market by accelerating engineering, sales and marketing efforts.
"Current Wi-Fi products do not scale to the metro-area reach required by wireless network operators, service providers and many government agencies. FHP's cellular Wi-Fi products enable metro-scale deployment of 802.11 by dramatically increasing coverage while greatly reducing installation and backhaul costs," stated David Hanna, chairman and chief executive officer at FHP. "With the support of our marquee investors, we expect to leverage valuable industry connections and strategic advice that will accelerate our growth and establish us as a dominant player in the market."
According to Curtis Feeny, managing director at Voyager Capital and newest member of FHP's board of directors, "FHP differentiates itself in the market with technology that enables metro-scale Wi-Fi deployments previously not possible, solving key coverage and economic challenges. With its strong management team and revolutionary technology offering, FHP is well positioned to become a leader in the emerging metro-scale Wi-Fi market."
"As cellular telephone systems have led to widespread mobility for voice services, we believe that cellular Wi-Fi networks are the key to ubiquitous, broadband mobile data services. We envision a future where a variety of end-users – from police officers, firemen and first responders at disaster sites to consumers to business travelers – demand anytime/anywhere network access. FHP is uniquely poised to enable high-speed wireless metro-scale communications," stated Bill Gurley, partner at Benchmark Capital and FHP board member.
Next generation metro-scale Wi-Fi networks
FHP Wireless's cellular Wi-Fi products enable Wi-Fi deployments that were difficult or impossible before. Unlike hot spot solutions that provide limited coverage and require dedicated wired network connections, FHP products transform Wi-Fi into a scalable, high-performance infrastructure by layering intelligence on top of Wi-Fi to create a new class of products, Wi-Fi cells. Wi-Fi cells self-organize and intelligently forward information from one to another until the data reaches a device with a wired connection to the Internet. The intelligent FHP system enables Wi-Fi hot zones that eliminate the need for each Wi-Fi node within the zone to have a wired connection. Using FHP Wireless' cellular Wi-Fi approach, Wi-Fi networks can be scaled to support large, metro-scale networks. The resulting network continuously monitors network traffic, interference and wired connection availability to offer users highly reliable network connectivity. Because FHP's cellular Wi-Fi solutions provide auto-discovery and automatic network configuration to self-organize into an optimal operating configuration, the network can be deployed at a fraction of the time and cost of alternatives. FHP also offers an advanced network management system for full network visibility and control.
About Benchmark Capital
Benchmark Capital was founded in 1995 with the mission of helping talented entrepreneurs build major technology enterprises focused on long-term growth. Benchmark takes a labor-intensive, team-oriented approach to venture investing in order to deliver a superior level of service to its portfolio companies. Benchmark's portfolio includes franchise companies such as Ariba (Nasdaq: ARBA), eBay (Nasdaq: EBAY), Handspring (Nasdaq: HAND), Juniper Networks (Nasdaq: JNPR) and Red Hat (Nasdaq: RHAT). Managing more than $2 billion in committed venture capital, Benchmark focuses on early-stage investing in markets where the partners have direct, relevant experience. For more information on Benchmark, visit its web site at www.benchmark.com.
About Boston Millennia Partners
Boston Millennia Partners is a private equity investment partnership managing over $700 million in capital. From its office in Boston, Millennia invests in high-growth businesses in the healthcare and life sciences, telecommunications and information technology industries. Typical investments range from $3 to $15 million. The managers at Millennia have funded over 120 companies in the U.S. private equity market since 1980. Portfolio companies with whom they have invested include Verio (NASDAQ: VRIO), Brooks Fiber Properties/MCI Worldcom (NASDAQ: WCOM), HotJobs/Yahoo, Inc. (NASDAQ: YHOO), NeoWorld Communications, Inc./Nextel Communications, Inc. (NASDAQ: NXTL), and PAREXEL International (NASDAQ: PRXL), among others. For more information please contact Boston Millennia Partners at www.millenniapartners.com or call 617.428.5150.
About Hanna Ventures
Hanna Ventures, led by David W. Hanna, is an exclusive, early-stage venture capital firm based in Newport Beach, CA. Hanna Ventures invest primarily in early-stage, new technology and service companies with exceptional growth potential.
About Voyager Capital
Voyager Capital is Seattle's leading information technology venture capital firm, providing entrepreneurs with the resources, experience, and connections to build successful companies. Voyager invests in early stage enterprise software and services, Internet infrastructure, and wireless companies. Voyager's managing directors bring experience from a variety of senior management, business development, and venture capital roles. Voyager's advisory board members and investors provide important contacts for startups, and are among the most successful information technology executives and investors in Seattle and Silicon Valley. With $265M under management, Voyager's investments include Arkivio, Avenue A, Inc. (NASDAQ: AVEA), Capital Stream, ClearCommerce, Contivo, Kadiri, NetPodium (acquired by Akamai Technologies) Qsent, SeeCommerce, and Tegic Communications (acquired by America Online). Voyager is headquartered in Seattle with an office in Menlo Park, CA. For more info, visit Voyager's web site at www.voyagercapital.com or telephone (206) 438-1800.
About FHP Wireless
FHP Wireless is a leading supplier of systems used to build metro-scale Wi-Fi networks. FHP's products enable network operators, service providers and government departments to provide ubiquitous, broadband wireless network connections to users in any locale. FHP's solution creates a truly wireless network, free from the requirement of per node wired connectivity and the arduous network planning associated with Wi-Fi hot spot deployments using access points. The FHP solution enables larger coverage areas, decreased installation costs and decreased operational costs. FHP was named to Fortune Magazine's "Cool Companies of 2002" in June. Headquartered in San Mateo, CA, FHP Wireless can be reached at 650-286-4250, email@example.com or www.fhpwireless.com