Startup secures $3 million round, aims to solve cell phone coverage problems in buildings and vehicles.
OTTAWA, Canada, May 28, 2001 -- Addressing a frustration shared by most cell phone users, new startup Spotwave Wireless Inc. announced today that it has developed technology that will allow cellular service providers to solve common coverage problems by offering clear "always on" wireless service in buildings and vehicles.
Spotwave also announced that it has recently closed a CDN$3 million series A round of financing, bringing the total investment to CDN$4 million. Ottawa-based Venture Coaches and Primaxis Technology Ventures of Toronto led this latest round. Recognizing a significant market opportunity, Spotwave is aiming for $10-$15 million in second round financing by fall 2001.
"This company started with a simple premise: to solve the frustrating and challenging everyday problem of cell phone coverage by improving coverage in places where cell phones don't currently work very well," said Spotwave President and CEO Shane Young. "Wireless carriers have done an impressive job of building the current wireless infrastructure, but problems still exist, especially when using cell phones in buildings and in vehicles. Subscribers expect their phones to work everywhere. Our choice was clear -- develop a product to meet this expectation."
The company was founded by Paul Simpson, David Bongfeldt and Shane Young, all veterans of the wireless and telecommunications industry. The germ of the idea came after Mr. Simpson -- who had never owned his own cell phone -- won a free cell phone. He was frustrated that the new phone didn't work at his own home so he teamed up with Mr. Bongfeldt and Mr. Young. Drawing upon their "smart antenna" expertise in mitigating interference for cellular, the trio conceived a unique product that would automatically and continually ensure reliable cell phone coverage when placed in problem coverage areas.
"We wanted to make this product as easy and foolproof as possible, yet pack it with all the intelligence of having an engineer right in the box," said Mr. Young. "In fact, we're convinced that anybody could install the product with no special training using ordinary tools. "
Spotwave's affordable, maintenance-free products will offer carriers a complete "plug and play" solution, requiring no engineering or specialized testing equipment. The company has already gained the confidence of some of the top U.S. and Canadian carriers, many of which have agreed to test Spotwave's beta product this summer.
The growth in the wireless industry represents a vast market opportunity for a company like Spotwave. With carriers still facing annual double-digit customer churn rates and the number of subscribers worldwide expected to reach one billion by 2004, providing reliable and universal wireless coverage becomes even more urgent.
"At Spotwave Wireless, we have seen a brilliant idea evolve into a product which solves a clear problem that everyone can appreciate," said Claude Haw, Managing Partner of Venture Coaches. "The experienced and knowledgeable team has achieved significant success in a relatively short timeframe. We are happy to have been part of the team to bring this wireless vision to reality."
"Primaxis is pleased to be an early-stage investor in Spotwave Wireless based on the strong technology platform, growing intellectual property portfolio and the skills and experience of the Spotwave team," said Kerri Golden, Vice-President, Primaxis. "We believe that there is a tremendous market opportunity for the Spotwave family of products to help wireless carriers solve coverage and reliability issues for the growing number of wireless subscribers."
Spotwave operated under the interim name of DPS Wireless since May 2000, but is now officially launching operations under its new and permanent name. The name Spotwave better reflects the company's vision of being in all of those spots where cell phones don't work. The company plans to ship its first in a line of products by fall 2001.
Venture Coaches is an Ottawa-based seed and early stage investor committed to building innovative photonic and wireless product companies. Venture Coaches combines an early stage investment fund with a strong mentoring approach. The company's partners and advisors leverage extensive investment, technology and management experience as well as a strong industry network to focus the entrepreneur's vision. With its strategic business network, Venture Coaches is committed to an active business acceleration model. For more information, visit www.VentureCoaches.com.
Primaxis Technology Ventures Inc. creates companies by providing seed capital, business and technology management expertise, and access to global networks to bring ideas from the lab to the market. Primaxis, a $57.5 million seed fund, was founded in November 1998 and is headquartered in Toronto, Canada. For more information, please visit www.primaxis.com.
Spotwave Wireless provides carrier-approved, intelligent indoor coverage solutions that seamlessly bring the outdoor signal inside – ensuring that cell phones and wireless devices work reliably indoors. Changing the economics of in-building wireless coverage, Spotwave's solutions are cost-effective, quick and easy to install, and require no maintenance. Spotwave solutions are also backed by a range of comprehensive installation services and support and are now the preferred coverage solution in networks operated by the top North American cellular and PCS carriers. The company website is www.spotwave.com.
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Spotwave, Spotwave Wireless and SpotCell are trademarks and/or registered trademarks of Spotwave Wireless Inc.
Jamie Crawford
Tel: (613) 591-1662 ext. 298
Email: jamie.crawford@spotwave.com
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