January 18, 2006
Spotwave Wireless Inc., a maker of hardware and software that can strengthen wireless signals inside of offices or homes, has raised a $10 million first tranche of a Series D round of funding, led by new investor Motorola Ventures.
Ottawa-based Spotwave currently sells software-operated boxes that can be placed inside of workplaces to amplify wireless signals over certain distances. In the second quarter of this year, Spotwave Chief Executive Bill Carlin said the company will also start selling a home version of this product, which covers a range of 2,500 square feet and will cost $399.
Carlin said that the current round of funding, which will help fuel the home product's launch, will be closed "in the next two months" and should be worth "$12 and a half [million] and north."
Founded in 2000, Spotwave has now raised some $32 million in venture funding from investors including Newbury Ventures, VenGrowth Private Equity Partners, Primaxis Technology Ventures, Skypoint Capital, VentureLink Fund, GrowthWorks Canadian Fund and RBQ Limited. These existing investors also all took part in this latest round.
Carlin said that demand for Spotwave's technology should increase in line with rising consumer demand for data applications, which require a strong signal to work optimally. Carlin also said that the growth of telecommuting will also fuel demand from people who need work-related data applications to perform just as well at home.
"When you try to run your EVDO card with two bars [of signal strength], you don't get the through-put that they promised you," Carlin said.
Spotwave spokeswoman Connie Costigan said that the company's technology operates on the 1900 MHz spectrum, and can be used by anyone with a plan from a carrier that offers PCS service, such as T-Mobile or Sprint Nextel.
"This is part of a shift from mobility to ubiquity," Carlin said. He said that the company is trying to ensure better wireless services wherever "you may be, and where 70 or 80 percent of the day is at work or at home."
As part of the new funding deal, Motorola Ventures investment manager Mel Gaceta is taking a seat as an observer on Spotwave's board. Spotwave's customers include insurer Safeco Corp., Hyatt Hotels Corp. and car maker General Motors Corp.
