BroadLink Softens Up To Ready for VC Funding

In a move that should be well-received by people who live or work outside the reach of current digital subscriber lines (DSL), wireless broadband company Broadlink Communications Inc. recently held a $7 million soft close on its first round of institutional fundraising.

Pacesetter Growth Fund led the preferred stock transaction. The Dallas-based venture vehicle also helped bring in additional institutional participants Positive Enterprises, Opportunity Capital and Pacific Venture Capital.

“We’ve been trying to go with strategic investments, and we welcome Pacesetter because they’ve really been in the middle of telecom and have strong investors like Bank of America and Fairview Capital [Partners],” said Warren Linney, chief executive at Broadlink.

The issuer plans to hold a final close on April 21, at which point it hopes to have raised a total of $10 million from this offering and $15 million overall. Immediately following that close, the company will launch a mezzanine round, which is expected to raise between $30 million to $50 million.

Once the current transaction is completed, a portion of the proceeds will be used to help Broadlink expand its telecom service beyond California and into East Coast markets like Atlanta and Washington D.C. Linney said that the company’s final goal is to operate in 100 top urban markets.